Share
Explore BrainMass

reformulated balance sheet and income statement

1-) Please provide reformulated balance sheet and income statement...

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 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 million)

_____________________________________________________

Revenue $4,356
Cost of goods sold 3,487
Oerating 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.

Solution Preview

Dear Student,

Thank you for using BM.
Below are my answers.

Sincerely,
Anna Liza Gaspar

ANSWERS
Operating income
Revenue 4,356
Cost of good ...

Solution Summary

Prepare a reformulated income statement that distinguishes items involved in operations from those involved in financing activities.

$2.19