(a) The following numbers were extracted from a balance sheet (in million):

Operating assets ... $547

Financial assets .... 145

Total liabilities ..... 322

Of the total liabilities, $190 million were deemed to the financing liabilities. Prepare a reformulated balance sheet that distinguishes items involved in operations from those involved in financing activities.

(b) An income statement consists of the following line items (in millions):

Revenue ...... $4,356

Cost of goods sold ... 3,487

Operating expenses .... 428

Interest income ...... 56

Interest expense .... 132

The firm pays no taxes. Prepare a reformulated income statement that distinguishes items involved in operations from those involved in financing activities.