FORUM DESCRIPTION 1. Using the Balance Sheet for your company, assess the ability of the company to pay its liabilities using the Current Ratio. a. Calculate the current ratio for each year presented on the financial statements. b. Comment on your company's ability to pay it's current liabilities. 2. Using the Income Statement for your company, assess the companies ability to generate profit using the Net Profit Margin. a. Calculate the net profit margin for each year presented on the financial statements. b. Comment on your company's ability to generate profit. CONSOLIDATED FINANCIAL STATEMENTS Consolidated Balance Sheet As at (thousands of United States dollars) NOTE December 31, 2020 December 31, 2019 ASSETS $ 5 Current assets Cash and cash equivalents Accounts receivable Prepaids and other current assets Derivative financial instruments Current income tax receivable Crude oil inventory 330,564 $ 80,166 13,457 396,839 149,510 8,363 511 22 17 6 16,534 1,915 442,636 $ 653 555,876 $ Deferred tax asset Goodwill Exploration and evaluation Property, plant and equipment 17 10 7 42,729 73,452 79,365 902,899 $ 1,541,0815 89,254 73,452 142,916 823,083 1,684,581 LIABILITIES AND SHAREHOLDERS' EQUITY $ 115,427 $ Current liabilities Accounts payable and accrued liabilities Current income tax payable Current portion of decommissioning and environmental liabilities 17 141,716 61,763 8,366 211,845 14 7,054 122,481 Lease obligation Cash settled share-based compensation liabilities Decommissioning and environmental liabilities Deferred tax liability 9 13 14 17 1,820 11,843 44,057 20,402 200,603 770 12,379 43,569 13,573 282,136 15 Shareholders' equity Share capital Contributed surplus Retained earnings 763,372 43,228 533,878 1,340,478 1,541,081 812,684 48,573 541,188 1,402.445 1,684,581 $ Commitments and contingendes (note 24)