Prior to Year 8, Cooper 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, Cooper sold its information technologies business. During Year 9, Cooper 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 Cooper with only its weapons manufacturing business. Financial statements for Cooper 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 6.19 (balance sheet), Exhibit 6.20 (income statement), and Exhibit 6.21 (statement of cash flows).

REQUIREDa. Refer to Exhibit 6.19. 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 Exhibit 6.20. 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 Exhibit 6.21. 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 6.19 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 6.20 would he or she use? Explain.f. If the analyst wanted to use cash flow ratios to assess short-term liquidity and long-term solvency risk, which columns and amounts in Exhibit 6.21 would he or she use? Explain.

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Exhibit 6.19 Cooper Corporation Balance Sheet (amounts in millions) (Problem 6.24) Year 8 as Restated in Year 8 as Originally Year 9 Annual Report Year 9 as Reported Reported ASSETS Cash and cash equivalents Marketable securities $ 513 $ 507 $ 513 432 307 307 Accounts receivable 64 99 444 Contracts in process 1,550 1,474 2,606 Net assets of discontinued businesses 767 1,468 Other current assets 329 145 449 $ 4,000 $ 372 Total Current Assets $3,655 $4,319 $ 322 245 Property, plant, and equipment, net $1,029 Other assets 300 859 Total Assets $4,222 $ 4,672 $6,207 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable and accruals Current portion of long-tem debt $ 553 $ 642 $2,593 145 450 516 Other current liabilities 1,250 $1,948 1,174 $ 2,266 Total Current Liabilities $3,109 Long-term debt 38 163 365 Other noncurrent liabilities 362 263 753 Total Liabilities $2,348 $2,692 $4,227 Common stock 42 55 55 Additional paid-in capital Retained eamings Treasury stock Total Shareholders' Equity Total Liabilities and Shareholders' Equity 25 25 2,474 2,651 2,651 (751) $1,980 (642) (751) $1,980 $1,874 $4,222 $ 4,672 $6,207