Refer to the year-end financial statements and accompanying notes of Brookfield Asset Management Inc. in the Appendix at the end of Volume 2 of this text.

Brookfield Asset Management

The following pages contain the financial statements, selected notes, and other information from the 2014 annual financial statements of Brookfield Asset Management. The complete annual report is available on WileyPLUS and the student website. The corporate profile below is taken from the company annual report.

Instructions
(a) Using ratio analysis, prepare an assessment of Brookfield Asset Management Inc.'s solvency and financial flexibility for the fiscal years ended December 31, 2014 and December 31, 2013.
(b) What types of interest-bearing debt have Brookfield and its subsidiaries issued? Provide a summary of the extent to which the total interest-bearing debt reported is due within the following 12 months, 2 to 5 years, 6 to 10 years, and more than 10 years from the reporting date of December 31, 2014. Is any of this debt secured? Explain briefly.
(c) Provide a summary of the currency in which the interest-bearing debt is repayable. How are these amounts reported on Brookfield's balance sheet?
(d) Briefly explain why the subsidiary borrowings are included in Brookfield's liabilities.