Please answer both questions

Question 1

Assume for this part that you have decided to eliminate both of these items. The income tax rate is 35 percent for all years. The change in net income for year 16 as a result of removing the restructuring charge, rounded to the nearest whole number, equals $____ million. If this change is negative be sure to include the minus sign.

Question 2

Assume for this part that you have decided to eliminate both of these items. The income tax rate is 35 percent for all years. The change in net income for year 15 as a result of removing the impairment, rounded to the nearest whole number, equals $_____ million. If this change is negative be sure to include the minus sign.

Borden, Inc Income Statement (amounts in millions) Year 16 Year 15 Year 14 Continuing Operations Sales Other Income (Expense)-Net Cost of Goods Sold Selling and Administrative Restructuring Expense Gain on Divestitures Impairment Losses Interest $5,944 (18) (4,136) (1,811) 11 (245) (8) (140) (15) (24) ($442) $6,261 (138) (4,240) (1,963) (15) 59 (293) (143) (41) (53) ($566) $6,226 35 (4,083) (2,045) (115) 15 0 (140) (41) 51 ($97) Interest Income Taxes Income (Loss) from Continuing Operations Discontinued Operations (ner of tax effects) Income (Loss) from Operations (Loss) on Disposal Gain (Loss) from Discontinued Operations $9 67 $76 $27 (59) ($32) ($26) (490) ($516) Accounting Changes ( net of tax effect) Postretirement Benefits Other than Pensions Net Income (Loss) -18 ($366) {$598) ($631) Herden, Inc. Statement of Cash Flows (amounts in mioma) (Problem 6,5) Year 16 Year 15 Year 14 -631 ($366) 157 245 ($598) 193 224 95 637 -53 -57 53 8 293 Operations Net Income (Loss) Depreciation and Amortization Loss on Disposal-Discontinued Operations Restructuring Impairment Losses (Increase) Decrease in Accounts Receivable (Increase) Decrease in Inventories Increase (Decrease) in Accounts Payable Increase (Decrease) in Current and Deferred Taxes Other Changes in Working Capital Accounts Cash Flow from Operations 7 61 10 30 -27 50 3 9 24 242 92 -7 17 82 .92 152 (S203) 289 ($150) ($177) 53 (9) {6) S80 $ 259 (5192) 3 (585) 616 (S536) 275 Investing Capital Expenditures Divestiture of Businesses and Sale of Securities Purchase of Businesses Cash Flow from Investing Financing Increase in Long-term Debt Issuance of Capital Stack Reduction in Long-term Debt Dividends Other Cash Flow from Financing Change in Cash Cash-Beginning of Year Cash-Hind of Year 998 12 (436) (43) 472) ($142) (493) (36) (150) ($142) 25 (129) (127) 400 ($105) 86 125 186 100 S 125 51:45 S 100 Borden, Inc Income Statement (amounts in millions) Year 16 Year 15 Year 14 Continuing Operations Sales Other Income (Expense)-Net Cost of Goods Sold Selling and Administrative Restructuring Expense Gain on Divestitures Impairment Losses Interest $5,944 (18) (4,136) (1,811) 11 (245) (8) (140) (15) (24) ($442) $6,261 (138) (4,240) (1,963) (15) 59 (293) (143) (41) (53) ($566) $6,226 35 (4,083) (2,045) (115) 15 0 (140) (41) 51 ($97) Interest Income Taxes Income (Loss) from Continuing Operations Discontinued Operations (ner of tax effects) Income (Loss) from Operations (Loss) on Disposal Gain (Loss) from Discontinued Operations $9 67 $76 $27 (59) ($32) ($26) (490) ($516) Accounting Changes ( net of tax effect) Postretirement Benefits Other than Pensions Net Income (Loss) -18 ($366) {$598) ($631) Herden, Inc. Statement of Cash Flows (amounts in mioma) (Problem 6,5) Year 16 Year 15 Year 14 -631 ($366) 157 245 ($598) 193 224 95 637 -53 -57 53 8 293 Operations Net Income (Loss) Depreciation and Amortization Loss on Disposal-Discontinued Operations Restructuring Impairment Losses (Increase) Decrease in Accounts Receivable (Increase) Decrease in Inventories Increase (Decrease) in Accounts Payable Increase (Decrease) in Current and Deferred Taxes Other Changes in Working Capital Accounts Cash Flow from Operations 7 61 10 30 -27 50 3 9 24 242 92 -7 17 82 .92 152 (S203) 289 ($150) ($177) 53 (9) {6) S80 $ 259 (5192) 3 (585) 616 (S536) 275 Investing Capital Expenditures Divestiture of Businesses and Sale of Securities Purchase of Businesses Cash Flow from Investing Financing Increase in Long-term Debt Issuance of Capital Stack Reduction in Long-term Debt Dividends Other Cash Flow from Financing Change in Cash Cash-Beginning of Year Cash-Hind of Year 998 12 (436) (43) 472) ($142) (493) (36) (150) ($142) 25 (129) (127) 400 ($105) 86 125 186 100 S 125 51:45 S 100