[This is a variation of the previous problem focusing on income statement presentation.]

Required:Refer to the information presented in P 4?4. Prepare a revised income statement for 2021 reflecting the additional facts. Use a multiple-step format similar to Illustration 4?4 of this chapter to prepare income from continuing operations, and then add to this the discontinued operations portion of the income statement. Assume that an income tax rate of 25% applies to all income statement items, and that 20 million shares of common stock were outstanding throughout the year.

P 4?4

The preliminary 2021 income statement of Alexian Systems, Inc., is presented below:

Additional Information:1. Selling and administrative expense includes $26 million in restructuring costs.2. Included in other income is $120 million in income from a discontinued operation. This consists of $90 million in operating income and a $30 million gain on disposal. The remaining $6 million is from the gain on sale of investments.3. Cost of goods sold was increased by $40 million to correct an error in the calculation of 2020?s ending inventory. The amount is material.

Transcribed Image Text:

ALEXIAN SYSTEMS, INC. Income Statement For the Year Ended December 31, 2021 ($ in millions, except earnings per share) Revenues and gains: $ 425 Sales revenue Interest revenue 4 126 Other income Total revenues and gains 555 Expenses: Cost of goods sold Selling and administrative expense 245 154 Income tax expense 39 Total expenses 438 $ 117 Net Income $5.85 Earnings per share