South Sea Baubles has the following (incomplete) balance sheet and income statement. ...
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Accounting
South Sea Baubles has the following (incomplete) balance sheet and income statement.
BALANCE SHEET AT END OF YEAR
(Figures in $ millions)
Assets
2015
2016
Liabilities and Shareholders' Equity
2015
2016
Current assets
$
109
$
235
Current liabilities
$
88
$
117
Net fixed assets
990
1,090
Long-term debt
695
940
INCOME STATEMENT, 2016
(Figures in $ millions)
Revenue
$
2,045
Cost of goods sold
1,125
Depreciation
445
Interest expense
259
a&b. What is shareholders equity in 2015 and 2016? (Enter your answers in millions.)
c&d. What is net working capital in 2015 and 2016? (Enter your answers in millions.)
e. What are taxes paid in 2016? Assume the firm pays taxes equal to 35% of taxable income. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)
f. What is cash provided by operations during 2016? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)
g. Net fixed assets increased from $990 million to $1,090 million during 2016. What must have been South Seas gross investment in fixed assets during 2016? (Enter your answer in millions.)
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