calculate the current ratio, quick ratio, debt-to equity ratio, asset turnover, times-interest earned, return on assets (ROA) and return on equity (ROE), over a two-year period. Discuss and interpret the ratios that you calculated. Discuss potential liquidity issues based on your calculations of the current and quick ratios. Are there any factors that could be erroneously influencing the results of the ratios? Discuss liquidity issues of competitive companies within the same industry

Information for comparable canadian companies was not provided

Consolidated statement of income (U.S. GAAP) millions of Canadian dollars 2016 For the years ended December 31 Revenues and other income 2015 2014 Operating revenues (a) (b) Investment and other income (note 8) Total revenues and other income 25,049 2.305 26,756 36.231 132 735 27,354 26,888 36,966 xpenses Exploration (note 15) Purchases of crude oil and products (c) 94 73 67 22,479 15,120 15,284 Production and manufacturing (d) Selling and general (d) Federal excise tax (a) 5,224 5,434 5,662 1,129 1,650 1,628 1,117 1,075 1,568 1,562 Depreciation and depletion Financing costs (note 12) 1,450 1,096 4 65 39 Total expenses 24,910 24,965 31,945 Income (loss) before income taxes 2,444 1,923 5,021 279 Income taxes (note 3) 801 1,236 Net income (loss) 2,165 1,122 3,785 Per-share information (Canadian dollars) Net income (loss) per common share basic (note 10) Net income (loss) per common share diluted (note 10) 2.55 1.32 4.47 2.55 1.32 4.45 Dividends per common share (a) Federal excise tax included in operating revenues. (b) Amounts from related parties included in operating revenues (note 16)." Amounts to related parties included in purchases of crude ail and products 0.59 0.54 0.52 1,650 1,568 1.562 2,342 3,058 3,358 (c) (note 16). 2,684 3,262 2,224 (d) Amounts to related parties included in production and manufacturing, and selling and general expenses (note 16) 533 442 366 "Note: Restated 2015 and 2014. The information in the notes to consolidated financial statements is an integral part of these statements. Consolidated statement of comprehensive income (U.S. GAAP) milions of Canadian dollars For the years ended December 31 2016 2,165 2015 2014 1,122 Net income (loss) 3,785 Other comprehensive income (loss), net of income taxes Post-retirement benefits liability adjustment (excluding amortization) (210) 64 (483) Amortization of post-retirement benefits liability adjustment included in net periodic benefit costs Total other comprehensive income (loss) 141 167 145 (69) 231 (338) Comprehensive income (loss) The information in the notes to consolidated financial statements is an integral part of these statements. 2,096 1,353 3,447 Consolidated statement of shareholders' equity (U.S. GAAP) millions of Canadian dollas At December 31 Common shares at stated value (note 10) At beginning of year Issued under the stock option plan Share purchases at stated value At end of year 2016 2015 2014 1,566 1,566 1,566 1,566 1,566 1,566 Earnings reinvested At beginning of year Net income (loss) for the year Share purchases in excess of stated value Dividends declared At end of year 23,687 23,023 19,679 2,165 1,122 3,785 (500) 25,352 (441) 23,023 (458) 23,687 Accumulated other comprehensive income (loss) (note 17) At beginning of year Other comprehensive income (loss) At end of year (1,721) (338) (2,059) (1,828) (69) (1,897) (2,059) 231 (1,828) Shareholders' equity at end of year The information in the notes to consolidated financial statements is an integral part of these statements 25,021 23,425 22,530 Consolidated balance sheet (U.S. GAAP) millions of Canadian dollars At December 31 2016 2015 Assets Current assets Cash 391 203 Accounts receivable, less estimated doubtful accounts (a) Inventories of crude oil and products (note 11) Materials, supplies and prepaid expenses Deferred income tax assets (b) (note 3) 2,023 1,581 949 1,190 468 424 272 Total current assets Investments and long-term receivables Property, plant and equipment, less accumulated depreciation and depletion (note 2) 3,831 1,030 3,670 1,254 36,333 37,799 Goodwill 186 224 Other assets, including intangibles, net (b) Total assets (note 2) 274 223 41,654 43,170 Liabilities Current liabilities Notes and loans payable (c) (note 12) Accounts payable and accrued liabilities (a) (b) (note 11) Income taxes payable Total current liabilities 202 1,952 3,193 2,989 488 452 3,883 5,032 5,393 Long-term debt (d) (note 14) Other long-term obligations (e) (note 5) Deferred income tax liabilities (b) (note 3) Total liabilities 6,564 3,656 3,597 4,062 4,191 16,633 19,745 Commitments and contingent liabilities (note 9) Shareholders' equity Common shares at stated value () (note 10) Earnings reinvested Accumulated other comprehensive income (loss) (note 17) Total shareholders' equity 1,566 1,566 23,687 25,352 (1,828) (1,897) 25,021 23,425 Total liabilities and shareholders' equity 41,654 43,170 Consolidated statement of cash flows (U.S. GAAP) millions of Canadian dollars Inflow (outflow) For the years ended December 31 Operating activities Net income (loss) Adjustments for non-cash items: Depreciation and deple tion (Gain) loss on asset sales (note 8) Inventory write-down to current market value (note 11) 2016 2014 2015 2,165 3,785 1,122 1,628 1,450 1,096 (2,244) (97) (696) 59 Deferred income taxes and other 114 367 1,123 Changes in operating assets and liabilities: (42) (172) Accounts receivable (442) 545 Inventories, materials, supplies and prepaid expenses Income taxes payable Accounts payable and accrued liabilities All other items-net (a) Cash flows from (used in) operating activities 197 (129) (693) (549) (77) 4,405 36 418 237 (1,030) 324 92 2,015 2,167 Investing activiti es Additions to property, plant and equipment Proceeds from asset sales (note 8) (1,073) 3,021 (2,994) (5,290) 142 851 Additional investments (1) (32) (2,884) (123) Cash flows from (used in) investing activities (4,562) 1,947 Financing activities Short-term debt -net (1,749) (32) 1,206 120 Long-term debt-additions (note 14) Long-term debt - reductions (note 14) Reduction in capitalized lease obligations Dividends paid Cash flows from (used in) financing activities 495 430 (2,000) (28) (492) (3,774) (20) (9) (449) (441) 100 705 (12) Increase (decrease) in cash Cash at beginning of year Cash at end of year (b) (a) Included contribution to registered pension plans. (b) Cash is composed of cash in bank and cash equivalents at cost. Cash equivalents are all highly liquid securities with maturity of three months or less when purchased. 188 (57) 203 215 272 391 203 215 163 225 362