ABC Milk Limited reported the following financial information for year 2017 and 2018 in the annual reports for the year 2018. In addition, the firm also provided some additional information as below: a) Sold equipment with a book value of $150 (= $900 cost $750 accumulated depreciation) for $70 cash;

b) Purchased long-term investments for $256 cash;

c) Repurchased common stock (treasury stock) for $40 cash. No new common stock was issued; and

d) Declared and paid $86 in cash dividends. Note: All reported values are in $millions including the values provided as additional information. Required 1. Identify the specific line-items of balance sheet and income statement from the financial information provided in the above table and prepare balance sheet and income statement for ABC Milk Limited for the years 2017 and 2018. [10 marks]

2018 2017 2,510 1,510 400 4,140 1,968 160 126 Accounts payable Accounts receivable Cash & cash equivalent Common stock Cost of goods sold Depreciation expense Income tax expense Interest expense Long-term investments Merchandise inventory Notes payable Property, plant and equipment Retained earnings Sales Selling general and administrative expenses 2,526 1,570 446 4,100 3,279 150 93 150 864 1,900 1,770 4,570 954 4,438 544 170 1,120 1,880 1,720 4,500 1,040 3,232 515 2018 2017 2,510 1,510 400 4,140 1,968 160 126 Accounts payable Accounts receivable Cash & cash equivalent Common stock Cost of goods sold Depreciation expense Income tax expense Interest expense Long-term investments Merchandise inventory Notes payable Property, plant and equipment Retained earnings Sales Selling general and administrative expenses 2,526 1,570 446 4,100 3,279 150 93 150 864 1,900 1,770 4,570 954 4,438 544 170 1,120 1,880 1,720 4,500 1,040 3,232 515