a. The following numbers were extracted from a balance sheet (in millions):
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 millions):
The firm pays no taxes. Prepare a reformulated income statement that distinguishes items involved in operations from those involved in financing activities.
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