es P1-8. Reading a Balance Sheet Southwest Airlines is a U.S. passenger airline focused on do- mestic, point-to-point, low-fare, and short- to medium-haul routes. Its balance sheets as of December 31, 2014 and December 31, 2013 appear in the exhibit below as the basis for the following questions. (Note that the company reports in millions of U.S. dollars.) Required: a. What is Southwest Airlines' largest asset? What is its book value as of December 31, 2014? b. Calculate the current ratio e as of December 31, 2014 and December 31, 2013. Why might this ratio be helpful? c. What might be the explanation for the company's air traffic liability? d. What is Southwest Airlines' largest long-term liability as of December 31, 2014? e. Calculate the total liabilities as of December 31, 2014. f. Was Southwest Airlines profitable during 2014? How can you tell? 1