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?
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?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 103.1C: Leverage Cook Corporation issued financial statements at December 31, 2019, that include the...
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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
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