The preliminary 2016 income statement of alexian system inc is presented below

Alexian system inc

Income statement

For the year ended dec 31 2016

($ in millions, except earings per share)

Revenue and gains 425

Net sales 3

Other income 126

Total revenue and sales 554

Expenses

Cogs 270

Selling and administrative 154

Income e taxes 52

Total expenses 476

Net income 78

Earning per share 3.90

Additional information

1. Selling and administrative expense include 26 million in restricting costs

2. Included in other income is 120 million in income from 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 5 million to correct an error in the calculation of 2015s ending inventory. The amount is material.

Required:

Prepare a revised income statement for 2016 reflecting the additionoal 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.