(Solution) - a The following numbers were extracted from a balance sheet -(2025 Original AI-Free Solution)

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(a) The following numbers were extracted from a balance sheet (in million):
Operating assets ... $547
Financial assets .... 145
Total liabilities ..... 322

Of the total liabilities, $190 million were deemed to the 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 ...... $4,356
Cost of goods sold ... 3,487
Operating expenses .... 428
Interest income ...... 56
Interest expense .... 132

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