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' Equity | 2015 | 2016 | |||||||||
Current assets | $ | 102 | $ | 200 | Current liabilities | $ | 74 | $ | 96 | |||||
Net fixed assets | 920 | 1,020 | Long-term debt | 660 | 870 | |||||||||
INCOME STATEMENT, 2016 | |||
(Figures in $ millions) | |||
Revenue | $ | 2,010 | |
Cost of goods sold | 1,090 | ||
Depreciation | 410 | ||
Interest expense | 252 | ||
a&b. What is shareholders equity in 2015 and 2016? c&d. What is net working capital in 2015 and 2016? (Enter your answers in millions.)
e. What are taxes paid in 2016? Assume the firm pays taxes equal to 35% of taxable income. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) f. What is cash provided by operations during 2016? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)
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