Comment on the Companys ability to pay its short-term obligations as of the end of the most recent year presented, calculating a financial ratio to support your assertion.

Elliott Corp Balance Sheets As of December 31, 2015 & 2016 (millions) 2015 2016 $ 502 $ 435 Assets Cash and Equivalents Accounts Receivable (net of allowance for doubtful accounts of $30 and $15) Inventories Prepaid Assets Total Current Assets 616 271 65 755 365 85 1,640 1,454 Properaty, Plant & Equipment Other Assets 2,340 543 2,298 538 Total Assets $ 4,337 $ 4,476 $ 125 394 Liabilities Current Portion of Long-term Debt Accounts Payable Accrued Product Warranty Costs Other Current Liabilities Total Current Liabilities 125 $ 365 875 102 1,467 813 112 1,444 Long-term Debt 1,876 1,751 40 40 Shareholders Equity Common Stock Class B Stock Additional paid-in Capital Retained Earnings Total Shareholders Equity 531 10 541 690 1,281 423 994 Total Liabilities and Shareholders Equity $ 4,337 $ 4,476 Elliott Corp Statements of Operations For the Years Ended December 31, 2014, 2015 & 2016 (millions) 2014 2015 2016 Revenues $ 4,687 100% $ 5,015 100% $ 5,416 100% Cost of Goods Sold 3,047 65% 3,255 65% 3,510 65% Gross Margin 1,640 35% 1,760 35% 1,906 35% Operating Expenses: Selling & Administrative Costs Research & Development Other Expenses 752 328 38 16% 7% 854 301 17% 6% 989 271 43 18% 5% 1% 1% 42 1% Income from Operations 522 11% 563 11% 603 11% Interest & Other Expenses 90 2% 84 2% 93 2% Income Before Income Taxes 432 9% 479 10% 510 9% Provision from Income Taxes 151 3% 158 3% 163 3% Net Income $ 281 6% $ 321 6% $ 347 6% Elliott Corp Statements of Cash Flows For the Years Ended December 31, 2014, 2015 & 2016 (millions) 2014 2015 2016 $ $ $ 281 125 321 129 347 136 12 Cash Flow From Operations Net Income Depreciation Expense Impact on Cash of Changes in Working Capital Accounts: Accounts Receivable Inventories Prepaid Assets Accounts Payable Accrued Warranty Costs Other Current Liabilities Cash Flow From Operations 24 8 10 (12) 8 456 (68) (78) 5 (12) (42) 12 267 (139) (94) (20) 29 (62) 10 207 Cash Flow From Investing Activites Purchase of Equipment Change in Other Assets Cash Flow From Investing Activities (74) 1 (73) (84) 2 (82) (94) 5 (89) Cash Flow From Financing Activities Repayment of Long-term Debt Dividends Paid Proceeds from Issuance of Class B Stock Cash Flow From Financing Activities (125) (65) (125) (70) (125) (80) 20 (185) (190) (195) 193 (10) (67) Increase (Decrease) in Cash and Equivalents Cash and Equivalents: Beginning of Year End of Year 319 512 502 435 $ 512 502 $ $ $