Prior to Year 8, General Dynamics Corporation engaged in a wide variety of industries, including weapons manufacturing under government contracts, information technologies, commercial aircraft manufacturing, missile systems, coal mining, material service, ship management, and ship financing. During Year 8, General Dynamics sold its information technologies business. During Year 9, General Dynamics sold its commercial aircraft manufacturing business. During Year 9, it also announced its intention to sell its missile systems, coal mining, material service, ship management, and ship financing businesses. These strategic moves left General Dynamics with only its weapons manufacturing business.
Financial statements for General Dynamics for Year 9 as reported, Year 8 as restated in the Year 9 annual report for discontinued operations, and Year 8 as originally reported appear in Exhibit 9.8 (balance sheet), Exhibit 9.9 (income statement), and Exhibit 9.10 (statement of cash flows).

Required
a. Refer to the balance sheets of General Dynamics in Exhibit 9.8. Why does the restated amount for total assets for Year 8 of $4,672 million differ from the originally reported amount of $6,207 million?
b. Refer to the income statement for General Dynamics in Exhibit 9.9. Why are the originally reported and restated net income amounts for Year 8 the same (that is, $505 million) when each of the individual revenues and expenses decreased on restatement?
c. Refer to the statement of cash flows for General Dynamics in Exhibit 9.10. Why is the restated amount of cash flow from operations for Year 8 of $609 million less than the originally reported amount of $673 million?
d. If the analyst wanted to analyze changes in the structure of assets and equities between Year 8 and Year 9, which columns and amounts in Exhibit 9.8 would he or she use? Explain.
e. If the analyst wanted to analyze changes in the operating profitability between Year 8 and Year 9, which columns and amounts in Exhibit 9.9 would he or she use? Explain.
f. If the analyst wanted to use cash flow ratios to assess short-term liquidity and longterm solvency risk, which columns and amounts in Exhibit 9.10 would he or she use? Explain.