Comprehensive Analysis for Deer & Co Mining Services (One question with concatenated portions which need to be answered for the entire inferential analysis)

Due to the nature of the specific industry, Deer & Cos Mining Services Division is paid (i.e., Deer & Co receives cash) by their customers in advance of Deer & Co actually performing the services. Deer & Co recognizes revenue from these services over the service period. Assume that all such service sales work this way and that these service sales are the only ones which are paid for in advance.

An alternative treatment (which is not allowed under GAAP) for the service revenues would be to record revenue at the time at which cash is received. No further entry would then be needed when the services are provided.

To keep the analysis simple, assume that differences in the timing of revenue recognition do NOT affect the timing of expense recognition (alternatively, assume that the direct costs of providing the services are negligible). Ignore taxes.

1. If Deer & Co had always used the alternative treatment to account for Mining Services revenues, what would have been their Total sales and revenues for the year ended December 31, 2021? __________

2. If Deer & Co had always used the alternative treatment to account for Mining Services revenues, what would have been their debt-assets ratio (defined as total liabilities divided by total assets) as of December 31, 2021? Express your answer to two decimal places (i.e., 12.34% rather than 12%). __________

Income Statement

Balance Sheet

SE

(") rroint atributavie to common snarenoiders See accompanying notes to Consolidated Financial Statements Consolidated Financial Position at December 31 (Dollars in millions) \begin{tabular}{ll} 2021 & 2020 \\ \hline \end{tabular} Assets Current assets: Cash and cash equivalents Receivables - trade and other Receivables - finance Prepaid expenses and other current assets Inventories Total current assets Property, plant and equipment - net Long-term receivables - trade and other Long-term receivables - finance Deferred income taxes Intangible assets Goodwill Other assets Total assets Liabilities Current liabilities: Short-term borrowings: Machinery, Energy \& Transportation Financial Products Accounts payable Accrued expenses Accrued wages, salaries and employee benefits Customer advances Dividends payable Other current liabilities $9,2549,352 Long-term debt due within one year: Machinery, Energy \& Transportation Financial Products Total current liabilities Long-term debt due after one year: Machinery, Energy \& Transportation Financial Products Liability for postemployment benefits Other liabilities Total liabilities Commitments and contingencies (Notes 21 and 22) \begin{tabular}{rr} 45 & 1,420 \\ 6,307 & 7,729 \\ \hline 29,847 & 25,717 \end{tabular} Shareholders' equity Common stock of $1.00 par value: Authorized shares: 2,000,000,000 Issued shares: (2021 and 2020-814,894,624 shares) at paid-in amount Treasury stock: (2021 - 279,006,573 shares; and 2020 269,590,777 shares) at cost Profit employed in the business (*) Accumulated other comprehensive income (loss) Noncontrolling interests Total shareholders' equity Total liabilities and shareholders' equity \begin{tabular}{cc} \hline \hline(27,643) & (25,178) \\ 39,282 & 35,167 \\ (1,553) & (888) \\ \hline 32 & 47 \\ \hline 16,516 & 15,378 \\ \hline$82.793 & $78.324 \\ \hline \end{tabular} See accompanying notes to Consolidated Financial Statements