South Sea Baubles has the following (incomplete) balance sheet and income statement. Assets Current assets Net fixed assets 2021 $ 105 950 INCOME STATEMENT, 2022 (Figures in $ millions) Revenue Cost of goods sold Depreciation Interest expense $ 2,025 1,105 425 255 BALANCE SHEET AT END OF YEAR (Figures in $ millions) 2022 Liabilities and Shareholders' Equity $215 Current liabilities 1,050 Long-term debt 2021 $ 80 675 2022 $ 105 900 f. What is cash provided by operations during 2022? g. Net fixed assets increased from $950 million to $1,050 million during 2022. What must have been South Sea's gross investment in fixed assets during 2022? h. If South Sea reduced its outstanding accounts payable by $50 million during the year, what must have happened to its other current liabilities?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A 174.

Subject:- accounting 

South Sea Baubles has the following (incomplete) balance sheet and income statement.
Assets
Current assets
Net fixed assets
2021
$ 105
950
INCOME STATEMENT, 2022
(Figures in $ millions)
Revenue
Cost of goods sold
Depreciation
Interest expense
$ 2,025
1,105
BALANCE SHEET AT END OF YEAR
(Figures in $ millions)
2022
$ 215
1,050
425
255
Liabilities and Shareholders' Equity
Current liabilities
Long-term debt
2021
$ 80
675
2022
$ 105
900
f. What is cash provided by operations during 2022?
g. Net fixed assets increased from $950 million to $1,050 million during 2022. What must have been South Sea's gross investment in
fixed assets during 2022?
h. If South Sea reduced its outstanding accounts payable by $50 million during the year, what must have happened to its other current
liabilities?
Transcribed Image Text:South Sea Baubles has the following (incomplete) balance sheet and income statement. Assets Current assets Net fixed assets 2021 $ 105 950 INCOME STATEMENT, 2022 (Figures in $ millions) Revenue Cost of goods sold Depreciation Interest expense $ 2,025 1,105 BALANCE SHEET AT END OF YEAR (Figures in $ millions) 2022 $ 215 1,050 425 255 Liabilities and Shareholders' Equity Current liabilities Long-term debt 2021 $ 80 675 2022 $ 105 900 f. What is cash provided by operations during 2022? g. Net fixed assets increased from $950 million to $1,050 million during 2022. What must have been South Sea's gross investment in fixed assets during 2022? h. If South Sea reduced its outstanding accounts payable by $50 million during the year, what must have happened to its other current liabilities?
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