Problem:
The following numbers were extracted from a balance sheet (in millions)
Operating assets 547
Financial assets 145
Total liabilities 322
From the liabilities $190 million were deemed to be financing liabilities. So i would like to learn how to reformulate a balance sheet that distinguishes items involved from operations to financial activities.
And a income statement consist of the following line items
Revenue 4356
Cost of goods sold 3487
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