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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 2018 2019
South Sea Baubles has the following (incomplete) balance sheet and income statement.
BALANCE SHEET AT END OF YEAR | ||||||||||||||
(Figures in $ millions) | ||||||||||||||
Assets | 2018 | 2019 | Liabilities and Shareholders' Equity | 2018 | 2019 | |||||||||
Current assets | $ | 98 | $ | 180 | Current liabilities | $ | 66 | $ | 84 | |||||
Net fixed assets | 880 | 980 | Long-term debt | 640 | 830 | |||||||||
INCOME STATEMENT, 2019 | |||
(Figures in $ millions) | |||
Revenue | $ | 1,990 | |
Cost of goods sold | 1,070 | ||
Depreciation | 390 | ||
Interest expense | 248 | ||
a&b. What is shareholders equity in 2018 and 2019?
c&d. What is net working capital in 2018 and 2019?
e. What are taxes paid in 2019? Assume the firm pays taxes equal to 21% of taxable income.
f. What is cash provided by operations during 2019?
g. Net fixed assets increased from $880 million to $980 million during 2019. What must have been South Seas gross investment in fixed assets during 2019?
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