Assets Current assets Net fixed assets 2021 $ 101 910 INCOME STATEMENT, 2022 (Figures in $ millions) Revenue Cost of goods sold Depreciation Interest expense $ 2,005 1,085 405 251 BALANCE SHEET AT END OF YEAR (Figures in $ millions) Liabilities and Shareholders' Equity 2022 $195 Current liabilities 1,010 Long-term debt 2021 $72 655 2022 $93 860 a&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 $910 million to $1,010 million during 2022. What must have been South Sea's gross investment in
Assets Current assets Net fixed assets 2021 $ 101 910 INCOME STATEMENT, 2022 (Figures in $ millions) Revenue Cost of goods sold Depreciation Interest expense $ 2,005 1,085 405 251 BALANCE SHEET AT END OF YEAR (Figures in $ millions) Liabilities and Shareholders' Equity 2022 $195 Current liabilities 1,010 Long-term debt 2021 $72 655 2022 $93 860 a&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 $910 million to $1,010 million during 2022. What must have been South Sea's gross investment in
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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Transcribed Image Text:Assets
Current assets
Net fixed assets
INCOME STATEMENT, 2022
(Figures in $ millions)
Revenue
Cost of goods sold
Depreciation
Interest expense
2021
$ 101
2022
$ 195
910 1,010
$ 2,005
1,085
405
251
Req A and B Req C and D
BALANCE SHEET AT END OF YEAR
(Figures in $ millions)
Liabilities and Shareholders' Equity
Current liabilities
Long-term debt
Req E
Complete this question by entering your answers in the tabs below.
a&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 $910 million to $1,010 million during 2022. What must have been South Sea's gross investment in
fixed assets during 2022?
Answer is complete but not entirely correct.
h. If South Sea reduced its outstanding accounts payable by $46 million during the year, what must have happened to its other current
liabilities?
Req F
2021
Req G
$72
655
Req H
2022
$ 93
860
What are taxes paid in 2022? Assume the firm pays taxes equal to 21% of taxable income.
Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.
Cash provided by operations
191.00 million
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