South Sea Baubles has the following (incomplete) balance sheet and income statement.BALANCE SHEET AT END OF YEAR(Figures
Question:
South Sea Baubles has the following (incomplete) balance sheet and income statement.BALANCE SHEET AT END OF YEAR(Figures in $ millions)Assets20212022Liabilities and Shareholders' Equity20212022Current assets$ 106$ 220Current liabilities$ 82$ 108Net fixed assets9601,060Long-term debt680910INCOME STATEMENT, 2022(Figures in $ millions)Revenue$ 2,030Cost of goods sold1,110Depreciation430Interest expense256a&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 $960 million to $1,060 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 $51 million during the year, what must have happened to its other current liabilities?