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Evans Sports Company reported the following in recent balance sheets $($amounts in millions$).$

$($in millions$)$ June $30,2019$ December $31,2018$

Assets

Current Assets

Cash $ $328$ $ $430$

Accounts Receivable $776432$

Inventory $943561$

Prepaid Rent $5240$

Total Current Assets $2,0991,463$

Software $259164$

Equipment $882539$

Total Assets $ $3,240$ $ $2,166$

Liabilities and Shareholders'$$ Equity

Liabilities

Current Liabilities

Accounts Payable $ $514$ $ $474$

Notes Payable $($short$-$term$)02$

Income Tax Payable $495$

Total Current Liabilities $563481$

Notes Payable $($long$-$term$)11583$

Total Liabilities $678564$

Stockholders$$ Equity

Common Stock $10840$

Retained Earnings $2,4541,562$

Total Shareholders$$ Equity $2,5621,602$

Total Liabilities and Shareholders$$ Equity $ $3,240$ $ $2,166$

Required:

$1.$ Calculate the current ratio at June $30,2019,$ and December $31,2018.$

$2-$a$.$ Did the company$$s current ratio increase or decrease?

$2-$b$.$ What does this imply about the company$$s ability to pay its current liabilities as they come due?

$3-$a$.$ What would Evans Sports current ratio have been on June $30,2019,$ if the company were to have paid down $$10($million$)$ of its Accounts Payable?

$3-$b$.$ Does paying down Accounts Payable in this case increase or decrease the current ratio?

$4.$ Are the company$$s total assets financed primarily by liabilities or stockholders$$ equity at June $30,2019?$

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