Question
South Sea Baubles has the following (incomplete) balance sheet and income statement. BALANCE SHEET AT END OF YEAR (Figures in $ millions) Assets 2021 2022
South Sea Baubles has the following (incomplete) balance sheet and income statement. BALANCE SHEET AT END OF YEAR (Figures in $ millions) Assets 2021 2022 Liabilities and Shareholders' Equity 2021 2022 Current assets $ 104 $ 210 Current liabilities $ 78 $ 102 Net fixed assets 940 1,040 Long-term debt 670 890 INCOME STATEMENT, 2022 (Figures in $ millions) Revenue $ 2,020 Cost of goods sold 1,100 Depreciation 420 Interest expense 254 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
| BALANCE SHEET AT END OF YEAR | |||||
|---|---|---|---|---|---|
| (Figures in $ millions) | |||||
| Assets | 2021 | 2022 | Liabilities and Shareholders' Equity | 2021 | 2022 |
| Current assets | $ 104 | $ 210 | Current liabilities | $ 78 | $ 102 |
| Net fixed assets | 940 | 1,040 | Long-term debt | 670 | 890 |
| INCOME STATEMENT, 2022 | |
|---|---|
| (Figures in $ millions) | |
| Revenue | $ 2,020 |
| Cost of goods sold | 1,100 |
| Depreciation | 420 |
| Interest expense | 254 |
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