South Sea Baubles has the below (incomplete) balance sheet and income statement. YEAR-END BALANCE SHEET (Figures in
Question:
South Sea Baubles has the below (incomplete) balance sheet and income statement.
YEAR-END BALANCE SHEET | ||||||||||||||
(Figures in millions of dollars) | ||||||||||||||
assets | 2015 | 2016 | Liabilities and equity | 2015 | 2016 | |||||||||
current assets | $ | 95 | $ | 165 | current liabilities | $ | 60 | $ | 75 | |||||
net fixed assets | 850 | 950 | long-term debt | 625 | 800 | |||||||||
INCOME STATEMENT, 2016 | |||
(Figures in millions of dollars) | |||
Revenues | $ | 1.975 | |
cost of goods sold | 1.055 | ||
Depreciation | 375 | ||
interest expense | 245 | ||
a&b. How much is equity in 2015 and 2016? (Enter your answers in millions.)
CD. What is net working capital in 2015 and 2016? (Enter your answers in millions.)
to. What taxes were paid in 2016? Suppose the firm pays taxes equal to 35% of taxable income. (Do not round up intermediate calculations. Enter your answer in millions, rounded to 2 decimal places.)
f. What is the cash provided by operations in 2016? (Do not round up intermediate calculations. Enter your answer in millions, rounded to 2 decimal places.)
g. Net fixed assets increased from $850 million to $950 million in 2016. How much should South Sea's gross investment in fixed assets be in 2016 ? (Enter your answer in millions.)
Fundamentals of Corporate Finance
ISBN: 978-1259722615
9th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus