2017 2,114 1,413 471 230 81 149 51 98 TEAM WORK TEAM WORK FINANCIAL ANALYSIS CHAPTER 11 THE WARNACO GROUP INC BALANCE SHEET Dec 31 ( Millions) INCOME STATEMENT 2015 2016 2017 2016 ASSETS Net Revenue $ 1,950 $ Cash and marketable securities $ 12$ 10 $ 82 Cost of Goods Sold $ 1,413 $ Accounts Receivable $ 297 $ 199 $ 315 Sellling and Adm Expenses $ 452 $ Inventories $ 431 $ 472 $ 735 Operating Income EBIT $ 85 $ Prepaid Expenses $ 45 S 27 $ 66 Interest expense $ 63 $ Current Assets $ 785 $ 708$ 1,198 EBT $ 22 $ Net property and plant $ 130$ 224 $ 326 Tax Expense $ 8 $ Other Assets $ 736 $ 851 $ 1,239 Net Income $ 14 $ Total Assets $ 1,651 $ 1,783 $ 2,763 Liabilities and Equity Short Term Debt $ 21 $ 30 $ 145 Accounts Payable $ 289 $ 504 $ 600 Accrued Liabilities $ 122 $ 128 $ 111 Taxes Payable $ $ 17 $ 24 Current Liabilities $ 432 $ 679 $ 880 Long-term Debt $ 354 $ 412 $ 1,188 Other long-term liabilities $ 14 $ 12 $ 29 Total Liabilities $ 800 $ 1,103 $ 2,097 Redeemable preferred shares $ 101 $ 102 $ 103 Common Equity $ 750 $ 578 $ 563 Total Liabilities and Equity $ 1,651 $ 1,783 $ 2,763 The Warnaco Group Inc. declared bankruptcy In February 2018, soon after publishing its financial statements for its year ended December 2017 Warnaco Gruop's Financial Statements data from 2015 to 2017 are presented a) Discuss whether the information provided in the exhibit provides any warning of the company's eventual demise. Your answer should be based on an analysis of Warnaco's 2015-2017 all activity, debt, liquidity and profitability ratios ( Show calculations) b) Briefly describe any anormalies or peculiarities in Warnaco's ratios and/or financial data