Question

Here are the 2015 and 2016 (incomplete) balance sheets for Newble Oil Corp.

BALANCE SHEET AT END OF YEAR
(Figures in $ millions)
Assets	2015			2016			Liabilities and Shareholders' Equity	2015			2016
Current assets	$	323		$	485		Current liabilities	$	275		$	253
Net fixed assets		1,330			1,485		Long-term debt		895			1,050

a&b. What was owners’ equity at the end of 2015 and 2016? (Enter your answers in millions.)

c. If Newble paid dividends of $165 million in 2016 and made no stock issues, what must have been net income during the year? (Enter your answer in millions.)

d. If Newble purchased $365 million in fixed assets during 2016, what must have been the depreciation charge on the income statement? (Enter your answer in millions.)

e. What was the change in net working capital between 2015 and 2016? (Enter your answer in millions.)

f. If Newble issued $226 million of new long-term debt, how much debt must have been paid off during the year? (Enter your answer in millions.)

Answer 1

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ΑΙ Η 141 NPV, IRR, PBP,OCFINDEX - Microsoft Excel (Product Activation Failed) File Home Insert Page Layout Formulas Data Review View Add-Ins - 2x % Cut Σ AutoSum : A Calibri 11 A A = = = V Wrap Text General Ea Copy Fill Paste BI U D- DA E E E s FMerce Merge & Center - Center $ % % , 4.0 .00 :.: Conditional Format Cell Format Painter Insert Delete Format Sort & Find & Formatting as Table Styles 2 Clear Filter Select Clipboard Font Alignment Number Styles Cells Editing AG146 fax Z AA AB AC AD AE AF AG AH ALAJ 140 a &b OWNER'S EQUITY = TOTAL ASSETS-TOTAL LIABILITIES 2015 483 (1330 + 323) -(895 +275) 142 2016 667 (1485 +485) -(1050+253) 143 144 NET INCOME = CHANGE IN EQUITY + DIVIDEND PAID 145 NET INCOME = (667-483) + 165 146 NET INCOME = 349 147 148 DEPRECIATION = BEGINNING NET FIXED ASSETS + PURCHASE - ENDING FIXED ASSETS 149 DEPRECIATION = 1330 + 365 - 1485 150 DEPRECIATION = 210 151 152 CHANGE IN NET WORKING CAPITAL = CHANGES INCURRENT ASSETS - CHANGES IN CURRENT LIABILITIES 153 CHANGE IN NET WORKING CAPITAL = (485-323) - (253-275) 154 CHANGE IN NET WORKING CAPITAL = 184 155 156 DEBT REPAID = OPENING BALANCE OF DEBT + DEBT ISSUED - CLOSING BALANCE OF DEBT 157 DEBT REPAID = 895 +226 - 1050 158 DEBT REPAID = 71 O CF CASH FLOW STATW FCFARM, MSI,confidenceINDEX CURRENCY LOAN CROSS OVER HEDGING MONEY MARKET GM HPR AM TAX GROWTH SUST PREF AND DIV POLICY I Rea ferences 200 130% 0 + ODOB 9 * ENG 21-11-2019