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The preliminary 2021 income statement of Alexian Systems, Inc., is presented below: ALEXIAN SYSTEMS, INC. Income Statement For the Year Ended December 31, 2021 ($
The preliminary 2021 income statement of Alexian Systems, Inc., is presented below:
ALEXIAN SYSTEMS, INC. Income Statement For the Year Ended December 31, 2021 ($ in millions, except earnings per share) | ||
Revenues and gains: | ||
Sales revenue | $ | 540 |
Interest revenue | 19 | |
Other income | 137 | |
Total revenues and gains | 696 | |
Expenses: | ||
Cost of goods sold | 285 | |
Selling and administrative expense | 191 | |
Income tax expense | 55 | |
Total expenses | 531 | |
Net Income | $ | 165 |
Earnings per share | $ | 16.50 |
Additional information:
- Selling and administrative expense include $42 million in restructuring costs.
- Included in other income is $130 million in income from a discontinued operation. This consists of $90 million in operating income and a $40 million gain on disposal. The remaining $7 million is from the gain on the sale of investments.
- Cost of Goods Sold in 2021 was increased by $10 million to correct an error in the calculation of 2020s ending inventory. The amount is material.
Required: Prepare a revised income statement for 2021 reflecting the additional facts. Use a multiple-step format. Assume that an income tax rate of 25% applies to all income statement items and that 10 million shares of common stock were outstanding throughout the year. (Enter your answers in millions rounded to 2 decimal places. Round EPS answers to 2 decimal places.)
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