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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 $ 90 $ 140 Current liabilities $ 50 $ 60 Net fixed assets 800 900 Long-term debt 600 750 INCOME STATEMENT, 2022 (Figures in $ millions) Revenue $ 1,950 Cost of goods sold 1,030 Depreciation 350 Interest expense 240 Required: 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 $800 million to $900 million during 2022. What must have been South Seas gross investment in fixed assets during 2022? h. If South Sea reduced its outstanding accounts payable by $35 million during the year, what must have happened to its other current liabilities
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