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What must have been south sea gross investment

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Reference no: EM132526183

South Sea Baubles has the following (incomplete) balance sheet and income statement.

BALANCE SHEET AT END OF YEAR (Figures in $ millions)

Assets                                                        2018                            2019

Current assets                                   $ 93                          $ 155

Net fixed assets                                  830                            930

Liabilities and Shareholders' Equity    2018                                2019

Current liabilities                                  $ 56                           $ 69

Long-term debt                                     615                             780

INCOME STATEMENT, 2019(Figures in $ millions)

Revenue $ 1,965

Cost of goods sold 1,045

Depreciation 365

Interest expense 243

Question 1: What is shareholders' equity in 2018 and 2019?

Question 2: What are taxes paid in 2019? Assume the firm pays taxes equal to 21% of taxable income.

Question 3: What is cash provided by operations during 2019?

Question 4: Net fixed assets increased from $830 million to $930 million during 2019. What must have been South Sea's gross investment in fixed assets during 2019?

The founder of Alchemy Products Inc. discovered a way to turn gold into lead and patented this new technology. He then formed a corporation and invested $1,200,000 in setting up a production plant. He believes that he could sell his patent for $48 million.

Question 5: If there are two million shares of stock in the new corporation, what would be the book value per share? (Round your answer to 2 decimal places.)

Question 6: If there are two million shares of stock in the new corporation, what would be the price per share? (Round your answer to 2 decimal places.)

Reference no: EM132526183

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