E10.5. Reformulation of a Balance Sheet and Income Statement (Easy) Reformulate the following balance sheet and income statement for a manufacturing concern. Amounts are in millions. The firm bears a 36 percent statutory tax rate. Balance Sheet Assets Operating cash Liabilities and Equity $ 23 Accounts payable $1,245 Cash equivalents 435 Accrued expenses 1,549 Accounts receivable 1,827 Deferred tax liability 712 Inventory 2,876 Property, plant, and equipment 3,567 Long-term debt 3,678 Preferred stock 432 Common equity 1,112 Total assets $8,728 Liabilities and equity $8,728 Income Statement Revenues $7,493 Operating expenses 6,321 Interest expense Income before tax Income tax 221 951 295 Net income Preferred dividends 656 26 Net income available to common $ 630