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South Sea Baubles has the following (incomplete) balance sheet and income statement. BALANCE SHEET AT END OF YEAR (Figures in 5 millions) 2022 Liabilities
South Sea Baubles has the following (incomplete) balance sheet and income statement. BALANCE SHEET AT END OF YEAR (Figures in 5 millions) 2022 Liabilities and Shareholders' Equity $ 240 Current liabilities 1.100 Long-tern debt Assets Current assets Net fixed assets 2021 $ 110 1.000 INCOME STATEMENT, 2022 (Figures in 5 millions) Revenue Cost of goods sold Depreciation Interest expense 2021 $ 90 700 2022 $ 120 950 $ 2.050 1,130 450 260 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 $1,000 million to $1,100 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 $55 million during the year, what must have happened to its other current liabilities?
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