2. South Sea Baubles has the following (incomplete) balance sheet and income statement. BALANCE SHEET AT END OF YEAR (figures in millions) Assets 2022 2023 Liabilities and Shareholders' 2022 2023 Equity Current Assets $90 $140 Current liabilities $50 $60 Net fixed assets 800 900 Long-term debt 600 750 Income Statement, 2023 Revenue Cost of goods sold Depreciation Interest expense $1,950 1,030 350 240 a. What is shareholders' equity in 2022 and 2023? b. What is net working capital in 2022 and 2023? c. What are taxes paid in 2023? Assume the firm pays taxes equal to 21% of taxable income.

2. South Sea Baubles has the following (incomplete) balance sheet and income statement. BALANCE SHEET AT END OF YEAR (figures in millions) Assets 2022 2023 Liabilities and Shareholders' 2022 2023 Equity Current Assets $90 $140 Current liabilities $50 $60 Net fixed assets 800 900 Long-term debt 600 750 Income Statement, 2023 Revenue Cost of goods sold Depreciation Interest expense $1,950 1,030 350 240 a. What is shareholders' equity in 2022 and 2023? b. What is net working capital in 2022 and 2023? c. What are taxes paid in 2023? Assume the firm pays taxes equal to 21% of taxable income.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.4.10P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...

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