
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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(f.) figuring out what is Cash provided by operation during 2019.
(G.) Net fixed assets increased from $920 million to $1,020 million during 2019 what must have been South seeds gross investment and fix assets during 2019?

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C Scl ed: Financial Statement
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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)
2019 Liabilities and Shareholders' Equity
200 Current liabilities
1,020 Long-term debt
Assets
2018
2018
2019
Current assets
$ 102 $
$74 $ 96
Net fixed assetS
920
660
870
INCOME STATEMENT, 2019
(Figures in $ millions)
Revenue
Cost of goods sold
Depreciation
Interest expense
$ 2,010
1,090
410
252
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 $920 million to $1,020 million during 2019. What must have been South Sea's gross investment in
fixed assets during 2019?
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