The financial statements of Brookfield Asset Management Inc. for its year ended December 31, 2014, appear at the end of this book.

Instructions

(a) What alternative formats could the company have used for its balance sheet? Which format did it adopt?

(b) Identify the various techniques of disclosure that the company could have used to present additional financial information that is pertinent. Which techniques does it use in its financial statements?

(c) Which presentation method does the company use for its statement of cash flows (direct or indirect method)? What were the company's cash flows from its operating, investing, and financing activities for the year ended December 31, 2014? What was the trend in net cash provided by operating activities over the year ended December 31, 2014? Is the cash generated from operating activities significantly different from net earnings in both 2013 and 2014? Suggest why this might happen.

(d) Calculate the company's

(1) Current cash debt coverage ratio,

(2) Cash debt coverage ratio, and

(3) Free cash flow for the years ended December 31, 2014 and 2013. What do these ratios indicate about the company's financial condition?