Carolina, Inc. Balance Sheet

Year	2022	2021
Assets
Cash	384	249.7
Receivables	364.5	367.5
Inventories	1070.4	1086.3
Total CA	1818.9	1703.5
Fixed Assets	7738.8	7771.7
Total Assets	9557.7	9475.2
Liabilities and Equity
Payables	387.2	357.6
Other	286.5	319.3
Total CL	673.7	676.9
LT Debt	2084.9	2120.5
Other LT Liabilities	1426.2	1414.4
Total LT Liabilities	3511.1	3534.9
Total Liabilities	4184.8	4211.8
Common Stock	3700	3700
Retained Earnings	1672.9	1563.4
Total Equity	5372.9	5263.4
Total Liabilities and Equity	9557.7	9475.2

Carolina Inc. Income Statement

Year	2022	2021
Total Revenue	6324.6	5925.8
CoGS	4047.9	3830.6
Fixed Costs	1003.3	912.7
Depreciation	180.8	192.9
Operating Income	1092.6	989.6
Interest	255.2	250.8
Income Tax	167.2	176.4
Net Income	670.2	562.4

12. As with many other corporations, portion of Carolinas assets is financed with debt. Name three reasons why use of leverage may be beneficial for the firm; three reasons why excessive reliance on debt financing may have negative consequences for the company (shareholders).