d) Is this firm well-diversified with their arrangement of capital? That is, are they well diversified with different sources of capital?

d) Is this firm well-diversified with their arrangement of capital? That is, are they well

diversified with different sources of capital?

Balance Sheet (in millions)

2012 2013 2014

Assets

Cash 30 10 473

Marketable securities 100 100 0

Accounts Receivable 920 150 800

Inventory 710 178 450

Plant, Building, and Equipment’s (net) 1872 2802 1209

Investments in affiliates 0 30 329

Total Assets 3632 3270 3261

Liabilities

Short-term debts 507 9 30

Advances from customers 111 34 134

Accounts payable 685 192 771

Interest payable 75 98 62

Tax payable 127 147 128

Other Accrued Expenses 20 15 35

Bonds payable 925 1486 750

Stockholders' Equity

Common stock 1021 1055 1175

Additional paid-in capital 74 156 47

Retained earning 87 78 129

Total liabilities and equities 3632 3270 3261

Income Statement(in millions)

2012 2013 2014

Net Sales 3296 3418 3983

Cost of Goods Sold 2115 1979 2510

Selling and General Expenses 700 812 759

Depreciation Expense 160 298 284

Interest Expense 90 109 121

Income Tax Expense 195 137 254

Net Income 36 83 55