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

Question

South Sea Baubles has the following (incomplete) balance sheet and income statement. BALANCE SHEET AT END OF YEAR (Figures in $ millions) 2015 2016 Liabilities and Shareholders Equity Assets Current assets Net fixed assets $ 90 140 Current liabilities 800 900 Long-term debt 2015 2016 s 50 $ 60 600 750 INCOME STATEMENT, 2016 (Figures in s millions) Revenue 1,950 Cost of goods sold 1,030 Depreciation Interest expense 350 240 a&b.; What is shareholders' equity in 2015 and 2016? (Enter your answers in millions.) Answer is complete but not entirely correct 2015 2016 Shareholders $6,500 x million 6,900 x million ul

Explanation / Answer

a. equity in 2015 = 890 - 650 = 240

b. equity in 2016 = 1040 - 810 = 230

c. net working in 2015 = 90 - 50 = 40

d. net working capital in 2016 = 140 - 60 = 80

e. tax = 0.35*(1950 - 1030 - 350 - 240) = 115.50

max of 4 subsections to be answered

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