Question
South Sea Baubles has the following (incomplete) balance sheet and income statement. BALANCE SHEET AT END OF YEAR (Figures in $ millions) Assets 2015 2016
South Sea Baubles has the following (incomplete) balance sheet and income statement.
BALANCE SHEET AT END OF YEAR (Figures in $ millions) Assets 2015 2016 Liabilities and Shareholders' Current assets $ 110 $ 240 Current liabilities Net fixed assets 1,000 1,100 Long-term debt
INCOME STATEMENT, 2016 (Figures in $ millions) | |
Revenue | $ 2,050 |
Cost of goods sold | 1,130 |
Depreciation | 450 |
Interest expense | 260 |
a&b. What is shareholders equity in 2015 and 2016? (Show your answers in millions)
c&d. What is net working capital in 2015 and 2016? (Show your answers in millions)
e. What are taxes paid in 2016? Assume the rm pays taxes equal to 35% of taxable income. (Show your answer in millions rounded to 2 decimal places.)
f. What is cash provided by operations during 2016? (Show your answer in millions rounded to 2 decimal places.)
g. Net xed assets increased from $1,000 million to $1,100 million during 2016. What must have been South Seas gross investment in xed assets during 2016? (Show your answers in millions)
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