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BUSI 530 WEEK 2 HOMEWORK

BUSI 530 WEEK 2 HOMEWORK

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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

2013

2014

Liabilities and Shareholders' Equity

2013

2014

  Current assets

108

230

Current liabilities

86

114

  Net fixed assets

980

1,080

Long-term debt

690

930

 
INCOME STATEMENT, 2014

(Figures in $ millions)

  Revenue

2,040

  Cost of goods sold

1,120

  Depreciation

440

  Interest expense

258

 
a.

What is shareholders’ equity in 2013 and 2014? (Enter your answers in millions.) 

 
  

2013

2014

  Shareholders' equity

$  million  

$  million  

 
b.

What is net working capital in 2013 and 2014? (Enter your answers in millions.)

 
  

2013

2014

  Net working capital

$  million   

$  million   

 
c.

What are taxes paid in 2014? Assume the firm pays taxes equal to 35% of taxable income. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

 
  Taxes paid

$  million   

 
d.

What is cash provided by operations during 2014? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

 
  Cash provided by operations

$  million  

 
e.

Net fixed assets increased from $980 million to $1,080 million during 2014. What must have been South Sea’s gross investment in fixed assets during 2014? (Enter your answer in millions.)

 
  Gross investment

$  million  

 
 
6.
value:2.00 points


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