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

INCOME STATEMENT, 2019(Figures in $ millions)Revenue.......................................................$1,950Cost of goods sold........................................1,030Depreciation.....................................................350Interest expense..............................................240

a. What is shareholders? equity in 2018?

b. What is shareholders? equity in 2019?

c. What is net working capital in 2018?

d. What is net working capital in 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? Pay attention to changes in net working capital, using Table 3.4 as a guide.

g. Net fixed assets increased from $800 million to $900 million during 2019. What must have been South Sea?s gross investment in fixed assets during 2019?

h. If South Sea reduced its outstanding accounts payable by $35 million during the year, what must have happened to its other current liabilities?

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BALANCE SHEET AT END OF YEAR (Flgures In $ milllons) 2019 2018 Llablitles and Shareholders' Equlty Current llabilities 2018 2019 Assets $ 60 750 $ 90 Current assets $ 50 $140 Long-term debt Net fixed assets 600 800 900 Cash Provided by Operatlons: Net Income 8,630 Depreclatlon plus amortization 2,062 Changes In worklng capltal Items Decrease (Increase) In accounts recelvable Decrease (Increase) In Inventorles Decrease (Increase) In other current assets 139 -84 - 10 Increase (decrease) In accounts payable 352 Increase (decrease) In other current llabllittes 669 Total decrease (Increase) In working capltal 1,066 Stock-based compensatlon expense 273 Cash provided by operations 12,031 Cash Flows from Investments: Capital expenditure -1,897 Sales (acquisitions) of long-term assets 47 Other Investing activitles -378 Cash provided by (used for) Investments -2,228 Cash Provided for (used by) Financing Activitles: Increase (decrease) In short-term debt 850 Increase (decrease) In long-term debt 2,448 Dividends -4,212 Repurchases of stock -7,745 Other -211 Cash provided by (used for) financing activitles -8,870 Net Increase (decrease) In cash and cash equlvalents 933