a the following numbers were extracted from a balance sheet 248757

(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.

Related Articles

armstrong helmet company 239138

Armstrong Helmet Company manufactures a unique model of bicycle helmet Question Case project Learning Objectives: Prepare practical applications of course concepts Develop analytical and critical thinking Develop decision-making capabilities Enhance professional...

read more
GET A FREE QUOTE





  
Open chat
Need help? We are Online 24/7
Hello 👋
Can we help you?