Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 $ 430 Interest revenue 7 Other income 129 Total revenues and gains 566 Expenses: Cost of goods sold 248 Selling and administrative expense 150 Income tax expense 42 Total expenses 440 Net Income $ 126 Earnings per share $12.60 Additional Information: 1. Selling and administrative expense Includes $29 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 $9 million is from the gain on sale of Investments. 3. Cost of goods sold was Increased by $10 million to correct an error in the calculation of 2020's ending Inventory. The amount is material. Required: Prepare a revised Income statement for 2021 reflecting the additional facts. Use a multiple-step format. Assume that an Income tax rate of 25% applies to all Income statement items, and that 10 million shares of common stock were outstanding throughout the year. (Enter your answers in millions rounded to 2 decimal places. Round EPS answers to 2 decimal places.) ALEXIAN SYSTEMS, INC. Income Statement For the Year Ended December 31, 2021 ($ in millions except per share date) Gross profit Operating expenses: Total operating expenses Operating income Other income: Total other income Income from continuing operations before income taxes Income from continuing operations Discontinued operations: Income on discontinued operations Net income Earnings per share: Net income
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started