5. (20 points) You are given the following information regarding a firm "Jo-Jo Bear", if the firm did not issue preferred stocks while the firm may have some foreign subsidiaries overseas. The firm makes perfumes and cosmetics for middle-income class consumers. This industry tends to have a high gross profit margin such as 25% and the set-up costs are also high due to the production and technology. The R&D (Research and Development) costs are entirely reported as operating expenses according to GAAP.

Balance Sheet (in millions)

2017 2018 2019

Assets

Cash 1230 210 1070

Marketable securities50 200 0

Accounts Receivable1420 1350 2200

Inventory 260 1578 1450

Plant, Building,

and Equipments (net) 2873 2205 90

Investments in affiliates 0430 1329

Total Assets 5833 5973 6139

Liabilities

Short-term debts 107 130 30

Advances from customers 421 326 534

Accounts payable 1685 1792 657

Interest payable 75 198 62

Tax payable 147 120 128

Other Accrued Expenses 20 15 35

Bonds payable 1025 1976 2450

Stockholders' Equity

Common stock 2001 1201 1975

Additional paid-in capital 74 156 144

Retained earning 278 59 124

Total liabilities and equities 5833 5973 6139

Income Statement(in millions)

2017 2018 2019

Net Sales 4529 5418 6883

Cost of Goods Sold 2215 3109 3310

Selling and General Expenses 771 812 1059

Depreciation Expense 213 298 284

Interest Expense 97 109 621

Income Tax Expense 175 137 154

Net Income 1058 953 1455

a) Perform the Ratio Analysis for the firm. (Need all the ratios that cover the activity analysis, liquidity analysis, solvency analysis to the profitability analysis)

b) Given your result in a), what is your opinion on the firm's performance so far? What is the firm's strategy in raising capital? What are the firm's possible business and financial strategies in your opinion?