Using the annual reports of both Samsung & LG, complete the following in a three- to five-page paper, excluding title and reference page(s):

For each company, report the amount of capital spending for the past two years. Quantitatively determine whether the amount of capital spending has been consistent or if it has fluctuated. Be sure to provide the calculations used to determine your answer. Describe the capital expenditures of each firm and the factors that impacted the companies debt capacities and capital structures.

Next, compare the level of capital spending across the two firms. Point out how the spending was similar and/or different and speculate why the similarities or differences might exist. You must use at least three scholarly sources in addition to the text. Please include references and please be original, no coping or pasting.

Tip: For help with reading an annual report access this handy guide from Moneychimp (http://www.moneychimp.com/articles/financials/fundamentals.htm)

Samsung

	Dec 31,2014	Dec 31, 2013	Dec 31, 2014	Dec 31, 2013
Assets
Current assets
Cash & cash equil.	16,840,766	16,284,780	15,997,688	15,469,535
Short-term financial instruments	41,689,776	36,722,702	39,602,713	34,884,299
Short term available for sale assets	3,286,798	1,488,527	3,122,255	1,414,009
Trade receivables	24,694,610	24,988,532	23,458,355	23,737,562
Non-trades receivable	3,539,875	2,887,402	3,362,663	2,742,854
Advances	1,989,470	1,928,188	1,889,874	1,831,660
Prepaid expenses	3,346,593	2,472,950	3,179,057	2,349,150
Inventories	17,317,504	19,134,868	16,450,560	18,176,943
Other current assets	1,795,143	2,135,589	1,705,275	2,028,678
Assets held for sale	645,491	2,716,733	613,177	2,580,729
Total Current assets	115,146,026	110,760,271	109,381,617	105,215,419
Non- Current assets
Long term available for sale assets	12,667,509	6,238,380	12,033,351	5,926,076
Investment in assoc. & joint ventures	5,232,461	6,422,292	4,970,515	6,100,781
Property, plant and equipment	80,872,950	75,496,388	76,824,309	71,716,907
Intangible assets	4,785,473	3,980,600	4,545,904	3,781,324
Long-term prepaid expenses	4,857,126	3,465,783	4,613,970	3,292,280
Deferred income tax assets	4,526,595	4,621,780	4,299,986	4,390,406
Other non-current assets	2,334,818	3,089,524	2,217,933	2,934,857
Total assets	230,422,958	214,075,018	218,887,585	203,358,050

LG

Assets	March 31,2014	Dec 31,2013
Current assets
Cash and cash equivalents	2,713,842	2,645,270
Financial deposits	67,580	67,896
Trade receivables	8,147,898	7,117,402
Loans and other receivables	488,882	596,505
Other financial assets	7,103	17,430
Inventories	5,572,569	4,838,830
Current income tax assets	122,247	116,254
Other current assets	1,084,378	925,471
	18,204,499	16,325,058
Non-current assets
Financial deposits	89,382	96,992
Loans and other receivables	580,487	601,978
Other financial assets	56,220	55,714
Property, plant and equipment	10,306,823	10,341,993
Intangible assets	1,335,166	1,363,690
Deferred income tax assets	1,548,719	1,619,551
Investments in associates and joint ventures	4,248,792	4,329,583
Investment property	5,334	4,923
Other non-current assets	782,823	788,582
	18,953,746	19,203,006
Total Assets	37,158,245	35,528,064
Liabilities
Current Liabilities
Trade payables	6,875,735	5,691,114
Borrowings	3,079,469	3,022,723
Other payables	2,553,385	2,829,686
Other financial liabilities	17,542	10,890
Current income tax liabilities	84,793	74,131
Provisions	668,889	663,701
Other current liabilities	2,796,425	2,721,759
	16,076,238	15,014,004
Non-current liabilities
Borrowings	6,574,525	6,188,306
Other payables	18,111	27,670
Other financial liabilities	9,475	10,663
Deferred income tax liabilities	7,271	7,651
Net defined benefit liability	655,505	580,919
Provisions	1,016,246	998,795
Other non-current liabilities	8,291,782	7,824,691
Total Liabilities	24,368,020	22,838,695
Equity attributable to owners	Of the Parent Company
Paid-in capital:
Capital stock	904,169	904,169
Share premium	3,088,179	3,088,179
Retained earnings	8,939,326	8,885,523
Accumulated other comprehensive loss	(881,099)	(907,440)
Other components of equity	(203,432)	(231,229)
	11,820,143	11,739,202
Non-controlling Interests	970,082	950,167
Total Equity	12,790,225	12,689,369
Total Liabilities and equity	37,158,245	35,528,064