E9.1. Basic Calculations (Easy)

a. The following numbers were extracted from a balance sheet (in millions): Operating assets Financial assets Total Liabilities $547 145 322 Of the total liabilities, $190 million were deemed to be 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 Cost of goods sold Operating expenses Interest income Interest expense $4,356 3,487 428 56 132 The firm pays no taxes. Prepare a reformulated income statement that distinguishes items involved in operations from those involved in financing activities.