South Sea Baubles has the following (incomplete) balance sheet and income statement. Assets Current assets Net...
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South Sea Baubles has the following (incomplete) balance sheet and income statement. Assets Current assets Net fixed assets 2021 $ 101 910 INCOME STATEMENT, 2022 (Figures in $ millions). Revenue Cost of goods sold Depreciation Interest expense $ 2,005 1,085 405 251 BALANCE SHEET AT END OF YEAR (Figures in $ millions) 2022 $ 195 1,010 Liabilities and Shareholders' Equity Current liabilities. Long-term debt 2021 $72 655 2022 $93 860 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 $910 million to $1,010 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 $46 million during the year, what must have happened to its other current South Sea Baubles has the following (incomplete) balance sheet and income statement. Assets Current assets Net fixed assets 2021 $ 101 910 INCOME STATEMENT, 2022 (Figures in $ millions). Revenue Cost of goods sold Depreciation Interest expense $ 2,005 1,085 405 251 BALANCE SHEET AT END OF YEAR (Figures in $ millions) 2022 $ 195 1,010 Liabilities and Shareholders' Equity Current liabilities. Long-term debt 2021 $72 655 2022 $93 860 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 $910 million to $1,010 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 $46 million during the year, what must have happened to its other current
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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