4. [19 points in total; 12, 3 and 4 points] Referring to the following GPC Corporation's financial statements answer the questions below TABLE 1: Balance Sheet of GPC Corporation as of December 31, 2016 and 2015 ASSETS 2015 2016 Current Assets Cash and Marketable Securities Receivables Inventories 100 50 150 300 120 60 180 360 Total Current Assets 400 100 300 490 130 360 Property, Plant, and Equipment (PP&E) Less: Accumulated depreciation Net PP& E Total Assets 600 720 LIABILITIES AND STOCKHOLDERS'S EQUITY Current Liabilities Accounts Payable Short-term debt Total Current Liabilities 60 90 150 72 184.6 256.6 Long-term debt (8% interest bonds maturing in 20 150 150 300 200 100 Stockholders' equity (1 million shares outstanding) Paid-in capital Retained earnings 313.4 200 113.4 Total Liabilities and Equity 600 720 All figures are in millions of U.S. dollars TABLE 2: Income Statement of GPC Corporation for 2016 200 110 90 -30 60 -21 39 15.6 23.4 Sales revenue Cost of goods sold Gross margin General, Selling, and Administrative expenses Interest expenses Income tax (40%) Operating Income Taxable income Net Income (= Net Profits or Earnings after tax) Allocation of net income Dividends 10 13.4 Change in retained earnings