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ZYX Inc. shows the following balance sheet as of 12/31/2016 (in US $ millions): Assets Liabilities Cash & checking deposits 3 Short-term debt 10 Accounts
ZYX Inc. shows the following balance sheet as of 12/31/2016 (in US $ millions):
Assets | Liabilities | ||
Cash & checking deposits | 3 | Short-term debt | 10 |
Accounts receivable | 4 | Accounts payable | 6 |
Inventories & supplies | 8 | Mortgage debt | 14 |
Vehicles | 12 | Total debt | 30 |
Machinery & equipment | 16 | ||
Buildings & structures | 24 | Equity | 37 |
Total assets | 67 | Total liabilities | 67 |
ZYX's financial office anticipates that the income statement from 1/1/2017 through 12/31/2017 will show the following figures (US $ millions):
(+) Total revenues | 50 |
(-) Cost of goods sold | 22 |
(-) Operating expenses (incl. depreciation) | 10 |
(-) Interest payments & other financial expenses | 4 |
(-) Taxes | 2 |
Determine ZYX's expected gross profit. (Type your answer in millions of US $. Do not write the $ sign or needless zeros.)
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