Headquartered in Melbourne, Australia, BHPBilliton, is a leading global resources company that operates in diverse commodity and geographic markets. The company is among the world's top producers of iron ore, metallurgical coal, conventional and non-conventional oil and gas, copper, energy coal, aluminum, manganese, uranium, nickel, and silver. BHP Billiton is traded on the Australian Securities Exchange (ASX) and also listed in London, Johannesburg, and New York.

a. Compute the current ratio for each year and discuss any trend in liquidity. Is the company sufficiently liquid? Explain. What additional information about the accounting numbers comprising this ratio might be useful in helping us assess liquidity? Explain.

b. Compute times interest earned and the liabilities-to-equity ratio for each year and discuss any noticeable change.

c. What is the overall assessment of the company's liquidity and solvency from the analyses in parts \(a\) and \(b\) ? Explain.

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($ millions) 2011 2012 Total Current Assets $25,280 20,451 Total Current Pretax Interest Total Liabilities Income Expense Liabilities $19,738 22,034 $31,255 $561 $45,165 23,022 730 62,188 Stockholders' Equity $57,755 67,085