20. Financial Statements. South Sea Baubles has the following (incomplete) balance sheet and income statement.

a. What is shareholders' equity in 2008 and 2009? (LO1)

b. What is net working capital in 2008 and 2009? (LOI)

c. What are taxable income and taxes paid in 2009? Assume the firm pays taxes equal to 35% of taxable income. (LO4)

d. What is cash provided by operations during 2009? Pay attention to changes in net working capital, using Table 3-4 as a guide. (LO3)

e. Net fixed assets increased from $800 million to $900 million during 2009. What must have been South Sea's gross investment in fixed assets during 2009? (LO1)

f. If South Sea reduced its outstanding accounts payable by $35 million during the year, what must have happened to its other current liabilities? (LOI) The following table contains data on Fincorp, Inc., that you should use for Practice Prob- lems 21-28. The balance sheet items correspond to values at year-end of 2008 and 2009, while the income statement items correspond to revenues or expenses during the year ending in either 2008 or 2009. All values are in thousands of dollars.

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BALANCE SHEET, AS OF END OF YEAR (figures in millions of dollars) Liabilities and Assets 2008 2009 Shareholders' Equity 2008 2009 Current assets $ 90 $140 Current liabilities $ 50 $ 60 Net fixed assets 800 900 Long-term debt 600 750 INCOME STATEMENT, 2009 (figures in millions of dollars) Revenue $1,950 Cost of goods sold 1,030 Depreciation 350 Interest expense 240