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Item$21$

$3$

points

Time Remaining $3$ hours $15$ minutes $13$ seconds $03$:$15$:$13$

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

BALANCE SHEET AT END OF YEAR

$($Figures in $ millions$)$

Assets $20212022$ Liabilities and Shareholders' Equity $20212022$

Current assets $ $95$ $ $165$ Current liabilities $ $60$ $ $75$

Net fixed assets $850950$ Long$-$term debt $625800$

INCOME STATEMENT, $2022$

$($Figures in $ millions$)$

Revenue $ $1,975$

Cost of goods sold $1,055$

Depreciation $375$

Interest expense $245$

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 $$850$ million to $$950$ 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 $$40$ million during the year, what must have happened to its other current liabilities?