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nework Saved Help Sa Problem 4-5 Income statement presentation; Restructuring costs; Discontinued operations; Accounting error (LO4-1, 4-3, 4-4, 4-5] The preliminary 2018 income statement of

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nework Saved Help Sa Problem 4-5 Income statement presentation; Restructuring costs; Discontinued operations; Accounting error (LO4-1, 4-3, 4-4, 4-5] The preliminary 2018 income statement of Alexian Systems, Inc., is presented below: 45 ALEXIAN SYSTEMS, INC. Income Statement For the Year Ended December 31, 2018 ($ in millions, except earnings per share) Revenues and gains Net sales $ 462 15 138 Interest Other income Total revenues and gains 615 Expenses: Cost of goods sold Selling and administrative Income taxes 282 177 30 Total expenses 498 Net Income s 117 Earnings per share $3.90 Additional information: 1. Selling and administrative expenses include $38 million in restructuring costs. 2. Included in other income is $132 million in income from a discontinued operation. This consists of $90 million in operating income and a $42 million gain on disposal. The remaining $6 million is from the gain on sale of investments. 3. Cost of goods sold was increased by $4 million to correct an error in the calculation of 2017's ending inventory. The amount is material Help Required: Prepare a revised income statement for 2018 reflecting the additional facts. Use a multiple-step format. Assume that an income tax rate of 25% applies to alll income statement items, and that 30 million shares of common stock were outstanding throughout the year. (Enter your answers in millions except earnings per share. Round EPS answers to 2 decimal places.) ALEXIAN SYSTEMS, INC. Income Statement For the Year Ended December 31, 2018 ($ in millions except per share date) Net sales revenue 462 Cost of goods sold (278) Gross profit 184 Operating expenses: Selling and administrative 139 Restructuring costs 38 Total operating expenses 177 Operating income Other income: Interest revenue 15 Gain on sale of investment Total other income 21 Income from oontinuing open before income taxes 28 Income tax expense K Prev 1 of 2 Next> 22

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