Q3. a. Following is the details of Garnet Inc in Millions of $ Garnet Inc. 2013 2012 Income Statement Net Sales 530.00 500.00 Costs (except depreciation) 400.00 380.00 Depreciation 30.00 25.00 Total operating costs 430.00 405.00 Earnings before interest and taxes (EBIT) 100.00 95.00 Less interest 23.00 21.00 Earnings before taxes 77.00 74.00 Taxes (30%) 23.10 22.20 Net income 53.90 51.80 Balance Sheet Assets Cash 28.00 27.00 Marketable securities 69.00 66.00 Accounts receivable 84.00 80.00 Inventories 112.00 106.00 Total current assets 293.00 279.00 Net plant and equipment 281.00 265.00 Total assets 574.00 544.00 Liabilities and Equity Accounts payable 56.00 52.00 Notes payable 138.00 130.00 Accruals 28.00 28.00 Total current liabilities 222.00 210.00 Long-term bonds 173.00 164.00 Preferred stock 100.00 100.00 Retained earnings 79.00 70.00 Common equity 179.00 170.00 Total liabilities and equity 574.00 544.00