Problem $3-6$ Financial Statements $($LO$1,4)$

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

BALANCE SHEET AT END OF YEAR

$($Figures in $ millions$)$

Assets $20212022$ Liabilities and Shareholders' Equity $20212022$

Current assets $ $99$ $ $185$ Current liabilities $ $68$ $ $87$

Net fixed assets $890990$ Long$-$term debt $645840$

INCOME STATEMENT, $2022$

$($Figures in $ millions$)$

Revenue $ $1,995$

Cost of goods sold $1,075$

Depreciation $395$

Interest expense $249$

a&b

$.$ What is shareholders$$ equity in $2021$ and $2022?$

c&d$.$ What is net working capital in $2021$ and $2022?$

e$.$ What are taxes paid in $2022?$ Assume the firm pays taxes equal to $21\%$ of taxable income.

f$.$ What is cash provided by operations during $2022?$

g$.$ Net fixed assets increased from $$890$ million to $$990$ million during $2022.$ What must have been South Sea$$s gross investment in fixed assets during $2022?$

h$.$ If South Sea reduced its outstanding accounts payable by $$44$ million during the year, what must have happened to its other current liabilities?