Excerpts from the 2014 financial statements for Goodyear are as follows (dollars in millions):

* Includes accumulated other comprehensive loss.

REQUIRED:
Assume that you have some capital to invest and that you are considering an equity investment in Goodyear. Review the financial statements and comment on Goodyear as an investment. Support your recommendation with financial ratios. Assume a tax rate of 30 percent. Interest expense is $357 in 2012, $392 in 2013, and $428 in 2014.

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2014 2013 2012 Balance Sheet $ 7,724 $ 8,644 $ 8,498 Current assets Long-term assets 8,883 8,475 10,385 4,736 Current liabilities 5,025 5,322 Long-term liabilities 9,528 10,634 11,026 Contributed capital (498) (90) (745) 1,370 Retained earnings 4,343 1,958 Income Statement $18,138 $19,540 $20,992 Revenues 18,940 20,809 Expenses 15,693 Statement of Cash Flows $ 340 $ 1,038 Net cash from operating activities 938 Net cash from investing activities (851) (1,136) (1,123) (324) 913 Net cash from financing activities (406) Change in cash balance (835) 715 (491) Beginning cash balance 2,996 2,281 2,772 $ 2,996 $ 2,281 $ 2,161 Ending cash balance