Finance

  PLEASE SEE ATTACHED

Item 4

South Sea Baubles has the following (incomplete) balance sheet and income statement.

  

BALANCE   SHEET AT END OF YEAR

 

(Figures   in $ millions)

 

Assets

2018

2019

Liabilities and Shareholders'   Equity

2018

2019

 

Current assets

$

104

$

210

Current liabilities

$

78

$

102

 

Net fixed assets

940

1,040

Long-term debt

670

890

      

  

INCOME   STATEMENT, 2019

 

(Figures   in $ millions)

 

Revenue

$

2,020

 

Cost of goods sold

1,100

 

Depreciation

420

 

Interest expense

254

       

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 $940 million to $1,040 million during 2019. What must have been South Sea’s gross investment in fixed assets during 2019?

Complete this question by entering your answers in the tabs below.

· Req A and B

· Req C and D

· Req E

· Req F

· Req G

What is shareholders’ equity in 2018 and 2019? (Enter your answers in millions.)

       

2018

_______ million

2019 

_____ million