South Sea Baubles has the following (incomplete) balance sheet and income statement.
| BALANCE SHEET AT END OF YEAR | |||||
| (Figures in $ millions) | |||||
| Assets | 2021 | 2022 | Liabilities and Shareholders' Equity | 2021 | 2022 |
|---|---|---|---|---|---|
| Current assets | $ 92 | $ 150 | Current liabilities | $ 54 | $ 66 |
| Net fixed assets | 820 | 920 | Long-term debt | 610 | 770 |
| INCOME STATEMENT, 2022 | |
| (Figures in $ millions) | |
| Revenue | $ 1,960 |
|---|---|
| Cost of goods sold | 1,040 |
| Depreciation | 360 |
| Interest expense | 242 |
a&b. What is shareholders’ equity in 2021 and 2022?
c&d. What is net working capital in 2021 and 2022?
e. What are taxes paid in 2022? Assume the firm pays taxes equal to 21% of taxable income.
f. What is cash provided by operations during 2022?
g. Net fixed assets increased from $820 million to $920 million during 2022. What must have been South Sea’s gross investment in fixed assets during 2022?
h. If South Sea reduced its outstanding accounts payable by $37 million during the year, what must have happened to its other current liabilities?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
The answer for other current liabilities is wrong and not 37M
by Bartleby ExpertEverything except the Cash provided by the operations is correct. Could you please check and let me know the correct answer for Cash provided by the operations
by Bartleby Expert
