Basic Calculations (Easy)

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

Of the total liabilities, $190 million were deemed to be financing liabilities. Prepare are formulated 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):

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

Operating assets Financial assets Total Liabilities $547 145 322