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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 | $ | 93 | $ | 155 | Current liabilities | $ | 56 | $ | 69 | |||||
| Net fixed assets | 830 | 930 | Long-term debt | 615 | 780 | |||||||||
| INCOME STATEMENT, 2019 | |||
| (Figures in $ millions) | |||
| Revenue | $ | 1,965 | |
| Cost of goods sold | 1,045 | ||
| Depreciation | 365 | ||
| Interest expense | 243 | ||
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 $830 million to $930 million during 2019. What must have been South Seas gross investment in fixed assets during 2019?
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