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    Item 4

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

      

    BALANCE   SHEET AT END OF YEAR

     

    (Figures   in $ millions)

     

    Assets

    2018

    2019

    Liabilities and Shareholders’   Equity

    2018

    2019

     

    Current assets

    $

    104

    $

    210

    Current liabilities

    $

    78

    $

    102

     

    Net fixed assets

    940

    1,040

    Long-term debt

    670

    890

          

      

    INCOME   STATEMENT, 2019

     

    (Figures   in $ millions)

     

    Revenue

    $

    2,020

     

    Cost of goods sold

    1,100

     

    Depreciation

    420

     

    Interest expense

    254

           

    a&b. What is shareholders equity in 2018 and 2019?

    c&d. What is net working capital in 2018 and 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?

    g. Net fixed assets increased from $940 million to $1,040 million during 2019. What must have been South Seas gross investment in fixed assets during 2019?

    Complete this question by entering your answers in the tabs below.

    Req A and B

    Req C and D

    Req E

    Req F

    Req G

    What is shareholders equity in 2018 and 2019? (Enter your answers in millions.)

           

    2018

    _______ million

    2019 

    _____ million

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