Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

20 ALEXIAN SYSTEMS, INC. Income Statement For the Year Ended December 31, 2018 ($ in millions, except earnings per share) Revenues and gains: Net sales

image text in transcribed

20 ALEXIAN SYSTEMS, INC. Income Statement For the Year Ended December 31, 2018 ($ in millions, except earnings per share) Revenues and gains: Net sales $ 442 Interest Other income 143 Total revenues and gains 605 Expenses : Cost of goods sold 287 Selling and administrative 158 Income taxes 64 Total expenses 509 Net Income $ 96 Earnings per share $4.80 Additional information: 1. Selling and administrative expenses include $43 million in restructuring costs. 2. Included in other income is $135 million in income from a discontinued operation. This consists of $90 million in operating income and a $45 million gain on disposal. The remaining $8 million is from the gain on sale of investments. 3. Cost of goods sold was increased by $10 million to correct an error in the calculation of 2017's ending inventory. The amount is material. Required: Prepare a revised income statement for 2018 reflecting the additional facts. Use a multiple-step format. Assume that an income tax rate of 40% applies to all income statement items, and that 20 million shares of common stock were outstanding throughout the year. (Enter your answers in millions except earnings per share. Round EPS answers to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Anti Money Laundering Governance Risk Management And Compliance GRC Book 4

Authors: Uwem Essia, Kester Ehiwario

1st Edition

B0BBXZ6GKR, 979-8848908473

More Books

Students also viewed these Accounting questions

Question

What is a buffer overflow, and how is it used against a Web server?

Answered: 1 week ago