ABC Ltd. reported the following income statement and balance sheet related information in 2020. The firm is subject to 35% statutory tax rate. 2020 income statement (in millions of dollars) Sales 4,080 Operating expenses to generate sales (2,805) Loss from asset impairment (170) Interest income 68 Interest expense (272) Income before tax 901 Income tax expense (270) Net income 631 2020 Balance sheet information (in millions of dollars) Accounts payable 1,867.5 Accounts receivable 2,740.5 Common equity 1,668 Property Plant and Equipment 5,350.5 Accrued expenses 2,323.5 Cash equivalents 652.5 Deferred tax liability 1,068 Operating cash 34.5 Preferred stock 648 Inventory 4,314 Long term debt 5,517 Required: (a) Reformulate the income statement to obtain 'Operating income from sales after tax'. (8 marks) (b) Calculate the effective tax rate on income from sales and briefly outline why it differs from the statutory rate of tax? (4 marks) (c) Produce a reformulated balance sheet using the above balance sheet information. (8 marks)