Here are the 2018 and 2019 (incomplete) balance sheets for Newble Oil Corp. BALANCE SHEET AT END OF YEAR(Figures in $ millions)Assets20182019Liabilities and Shareholders' Equity20182019Current assets$315 $445 Current liabilities$235 $245 Net fixed assets 1,250 1,445 Long-term debt 855 970 a&b. What was shareholders' equity at the end of 2018 and 2019?c. If Newble paid dividends of $125 million in 2019 and made no stock issues, what must have been net income during the year?d. If Newble purchased $325 million in fixed assets during 2019, what must have been the depreciation charge on the income statement?

Answered: BALANCE SHEET AT END OF YEAR (Figures…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Here are the 2018 and 2019 (incomplete) balance sheets for Newble Oil Corp.

BALANCE SHEET AT END OF YEAR
(Figures in $ millions)
Assets	2018	2019	Liabilities and Shareholders' Equity	2018	2019
Current assets	$	315		$	445	Current liabilities	$	235	$	245
Net fixed assets		1,250			1,445	Long-term debt		855		970

a&b. What was shareholders' equity at the end of 2018 and 2019?

c. If Newble paid dividends of $125 million in 2019 and made no stock issues, what must have been net income during the year?

d. If Newble purchased $325 million in fixed assets during 2019, what must have been the depreciation charge on the income statement?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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