Bimbo is selling a limited number of shares to the public. A group of friends is thinking on invest their savings and buy some shares.

In order to take a decision about the risk of this operation, they need to analyze their last balance sheet (below) and answer the following question considering this information.

What is the value of the assets of Bimbo and how these assets are distributed?

What is the level of internal and external financing of Bimbo?

What would happen with the financial structure of Bimbo if they decide to get more equipment?

In what way does the balance sheet show the financial situation of the company?

ConsolidatedBalance sheet

Bimbo Group, S. A. de C. V. and subsidiaries

To December 31st of 2012

(Million of pesos of purchasing power on the 31st of December of 2012)


Current assets:

Cash $4,110

Receivable documents and accounts 3,467

Inventory 1,401

Advance payments 237

Total current assets: $9.215

Buildings, machinery and equipment $18,469

Investment in shares in associates 685

Financial instruments 12

Deferred income taxes 1,443

Trademarks and right of use 3,000

Commercial credit 3,717

Intangible asset for labor obligations to the retirement 407

Other assets 82

Non-Current Assets 27,815

Total Assets 37,030

Liabilities and stockholders’equity

Current liabilities

Loans from financial institutions and

current portion of long-term debt: $247

Accounts payable to supplier: 3,019

Other accounts payable and accrued liabilities: 2,335

Accounts payable to related parts: 367

Participation of workers in utilities: 413

Total of current liabilities: 6,381

Long-term debt $8,092

Financial instruments 107

Labor obligations to the retirement and social welfare 1,214

Participation of workers in deferred earnings 58

Deferred income tax 1,324

Non-Current Liabilities 10,795

Total liabilities 17,176


Social capital $ 7,415

Reserve for repurchase of shares 703

Retained earnings 19,208

Other concepts of the accumulated integral result (5,665)

Accumulated effect of deferred income tax (2,203)

Financial instruments (68)

Majority stockholder s equity 19,390

Minority interest in consolidated subsidiaries 464

Stockholder s equity total !9,854

Total Liabilities and share holer s equity 37,030