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

Balance Sheet

Assets	2012	2011
Current assets	$ 140	$ 90
Net fixed assets	900	800
Liabilities and Shareholder's Equity
Current Liabilities	$ 60	$ 50
Long-term debt	750	600

Income Statement 2012

Revenue	$1,950
Cost of goods sold	(1,030)
Depreciation	350
Interest Expense	240

a) What was shareholders' equity at the end of 2011 and 2012?

b) What is the net working capital in 2011 and 2012?

c) What is the taxable income and taxes paid in 2012? Assume the firm pays taxes equal to 35% of taxable income.

d) What is cash flow provided by operations during 2012? Pay attention to changes in net working capital.

e) What must have been South Sea's gross invesement in fixed assets (capital expenditure) during 2012?

f) If South Sea reduced its outstanding accounts payable by $35 million during 2008, what must have happened to its other current liabilities?

g) What are the 2012 cash flow from assets, and cash flow to bondholders and shareholders? State all assumptions you make.