Southwest Airlines Company started in 1971 with three planes and now has more than 300 planes that fly into 55 different cities. In years when many other airlines reported net losses, Southwest Airlines' low-cost, no-frills flights resulted in profits. 1. Go to http://www.Southwest.com, click on About SWA, and read "A Brief History of Southwest Airlines." Who is the CEO of Southwest Airlines? Why can Southwest Airlines offer lower fares than other airlines? 2. In the left-hand column click on History and read the information provided. What is the Triple Crown? How often has Southwest Airlines won this award? Comment on one other item that you found of interest. 3. Go to http://www.Forbes.com to get the latest financial information. In the "Stock" section type LUV. the stock symbol of Southwest Airlines Co., and then click on Go In the left-hand column, click on "Company Info" and read the information provided. Comment on one item that makes Southwest Airlines different from other airlines. 4. In the left-hand column, click on "Financials." Menu selections are presented in the left- hand column.

a. For the most recent year, list the amount reported for "Passenger revenue." Is this account closed at the end of the accounting period?

b. For the two most recent years. list the amounts reported for "Cash/Equivalents." "Total current assets." "Total assets." "Total current liabilities." and "Total liabilities."

c. Is the balance sheet presented in a classified format? How can you tell?

d. Is Cash/Equivalents closed at the end of the accounting period? Why or why not?

e. For the two most recent years, calculate Southwest's current ratio and debt ratio. Do these values look strong or weak?