Styles Find Dictate Q2 A. (20 Marks) Financial Statements. South Sea Baubles has the following (incomplete) balance sheet and income statement BALANCE SHEET, AS OF END OF YEAR (Figures in millions of dollars) Assets 1996 1997 Liabilities & Shareholders' 1996 1997 Equity Current assets $90 $140 Current liabilities $50 $60 Net fixed assets $800 $900 Long-term debt S600 $750 INCOME STATEMENT, 1997 (Figures in millions of dollars) Revenue Cost of goods sold $1,950 $1,030 Depreciation S350 Interest expense S240 a. What is shareholders' equity in 1996 and 1997? b. What is net working capital in 1996 and 1997? What is taxable income and taxes paid in 1997? Assume the firm pays taxes equal to 35 percent of taxable income. C