Problem 3-7 Financial Statements (LO1) Here are the 2015 and 2016 (incomplete) balance sheets for Newble Oil...

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Finance

Problem 3-7 Financial Statements (LO1)
Here are the 2015 and 2016 (incomplete) balance sheets forNewble Oil Corp.
BALANCE SHEET AT END OF YEAR
(Figures in $ millions)
Assets 2015 2016 Liabilities and Shareholders' Equity 2015 2016
Current assets $ 326 $ 500 Current liabilities $ 290 $ 256
Net fixed assets 1,360 1,500 Long-term debt 910 1,080
a&b. What was ownersâ€™ equity at the end of2015 and 2016? (Enter your answers inmillions.)
c. If Newble paid dividends of $180 million in2016 and made no stock issues, what must have been net incomeduring the year? (Enter your answer inmillions.)
d. If Newble purchased $380 million in fixedassets during 2016, what must have been the depreciation charge onthe income statement? (Enter your answer inmillions.)
e. What was the change in net working capitalbetween 2015 and 2016? (Enter your answer inmillions.)
f. If Newble issued $232 million of newlong-term debt, how much debt must have been paid off during theyear? (Enter your answer in millions.)

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3.7 Ratings (545 Votes)

Q a and b Solution Owners equity Current assets Net fixed assets Long term debt Current liabilities In short Owners equity is the difference between total assets and total liabilities of company Year Owners See Answer

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BALANCE SHEET AT END OF YEAR
(Figures in $ millions)
Assets	2015	2016	Liabilities and Shareholders' Equity	2015	2016
Current assets	$	326		$	500	Current liabilities	$	290	$	256
Net fixed assets		1,360			1,500	Long-term debt		910		1,080