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?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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?

 

 

 

 

 

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