Prepare a reformulated income statement. Statutory tax rate is 40%. Prepare a reformulate balance sheet. Income...

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Prepare a reformulated income statement. Statutory tax rate is 40%. Prepare a reformulate balance sheet. Income Statement 2016 Sales 2,000 Cost of goods sold 1,500 Gross margin 500 Selling and general expenses 300 Operating income 200 Interest income 5 205 Interest expense 35 Income before tax 170 Income taxes 60 Net income 110 Reformulated Income Statement 2016 Sales Cost of goods sold Selling and general expenses Net operating profit before tax Tax as reported Tax benefit Tax on operating income NOPAT Interest income Interest expense Net interest expense before tax Tax benefit Net financial expense after tax Net income Balance Sheet Reformulated Balance Sheet 2016 2015 2016 2015 Assets Operating assets Operating assets 1,036 910 Operating liabilities Debt securities 110 90 NOA 1,146 1,000 Financial liabilities Liabilities and Equity Financial assets Operating liabilities 113 60 NFO Financing debt 360 340 Common equity 673 600 CSE 1,146 1,000 Prepare a reformulated income statement. Statutory tax rate is 40%. Prepare a reformulate balance sheet. Income Statement 2016 Sales 2,000 Cost of goods sold 1,500 Gross margin 500 Selling and general expenses 300 Operating income 200 Interest income 5 205 Interest expense 35 Income before tax 170 Income taxes 60 Net income 110 Reformulated Income Statement 2016 Sales Cost of goods sold Selling and general expenses Net operating profit before tax Tax as reported Tax benefit Tax on operating income NOPAT Interest income Interest expense Net interest expense before tax Tax benefit Net financial expense after tax Net income Balance Sheet Reformulated Balance Sheet 2016 2015 2016 2015 Assets Operating assets Operating assets 1,036 910 Operating liabilities Debt securities 110 90 NOA 1,146 1,000 Financial liabilities Liabilities and Equity Financial assets Operating liabilities 113 60 NFO Financing debt 360 340 Common equity 673 600 CSE 1,146 1,000