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

a. What is shareholders’ equity in 1999 and 2000?

b. What is net working capital in 1999 and 2000?

c. What is taxable income and taxes paid in 2000? Assume the firm pays taxes equal to 35 percent of taxable income.

d. What is cash provided by operations during 2000? Pay attention to changes in net working capital, using Table 2.3 as a guide.

e. Net fixed assets increased from $800 million to $900 million during 2000. What must have been South Sea’s gross investment in fixed assets during 2000?

f. If South Sea reduced its outstanding accounts payable by $35 million during the year, what must have happened to its other current liabilities?

Here are some data on Fincorp, Inc., that you should use for problems 21–28. The balance sheet items correspond to values at year-end of 1999 and 2000, while the income statement items correspond to revenues or expenses during the year ending in either 1999 or 2000. 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 1999 2000 Shareholders' Equity 1999 2000 Current assets $ 90 $140 Current liabilities $ 50 $ 60 Net fixed assets 800 900 Long-term debt 600 750 INCOME STATEMENT, 2000 (Figures in millions of dollars) Revenue Cost of goods sold Depreciation Interest expense $1,950 1,030 350 240