The income statement is incomplete but that is the format that is needed Income Statementfor the Year Ended December 31, 2021(S in millions, except earnings per share)Revenues and gains:Sales revenue425Interest revenue4Other income126Total revenues and gainsExpenses:Cost of goods soldSelling and administrative expenseIncome tax expense55524515439Total expensesNet income438$117Earnings per share$5.85Additional information ($ in millions):Selling and administrative expenses includerestructuring costsOther income includes extraordinary gainOther income gain from sale of investmentsCost of goods sold increase to correcterror in 2020 ending inventoryIncome tax rate26$120$4025%Outstanding shares of common stock20%24%24%24%24 ALEXIAN SYSTEMS, INC.Income StatementFor the Year Ended December 31, 2021(S in millions, except earnings per share)Sales revenueCost of goods soldGross profitOperating expenses:Selling and administrative expenseRestructuring costsTotal operating expensesOperating incomeOther income:Interest revenueGain on sale of investmentsTotal other incomeIncome from continuing operations beforeincome taxesIncome tax expenseIncome from continuing operationsDiscontinued operations:Income from operations of discontinuedcomponent (incl. gain on disposal of $30)Income tax exnense

Income Statement: The income statement is an output-oriented record, showcasing the net…

EXIAN SYSTEMS, INC. Income Statement For the Year Ended December 31, 2021 (S in millions, except earnings per share) Sales revenue Cost of goods sold Gross profit Operating expenses: Selling and administrative expense Restructuring costs Total operating expenses Operating income Other income: Interest revenue Gain on sale of investments Total other income Income from continuing operations before income taxes Income tax expense Income from continuing operations Discontinued operations: Income from operations of discontinued component (incl. gain on disposal of $30)

EXIAN SYSTEMS, INC. Income Statement For the Year Ended December 31, 2021 (S in millions, except earnings per share) Sales revenue Cost of goods sold Gross profit Operating expenses: Selling and administrative expense Restructuring costs Total operating expenses Operating income Other income: Interest revenue Gain on sale of investments Total other income Income from continuing operations before income taxes Income tax expense Income from continuing operations Discontinued operations: Income from operations of discontinued component (incl. gain on disposal of $30)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The income statement is incomplete but that is the format that is needed

Income Statement
for the Year Ended December 31, 2021
(S in millions, except earnings per share)
Revenues and gains:
Sales revenue
425
Interest revenue
4
Other income
126
Total revenues and gains
Expenses:
Cost of goods sold
Selling and administrative expense
Income tax expense
555
245
154
39
Total expenses
Net income
438
$
117
Earnings per share
$
5.85
Additional information ($ in millions):
Selling and administrative expenses include
restructuring costs
Other income includes extraordinary gain
Other income gain from sale of investments
Cost of goods sold increase to correct
error in 2020 ending inventory
Income tax rate
26
$
120
$
40
25%
Outstanding shares of common stock
20
%24
%24
%24
%24

ALEXIAN SYSTEMS, INC.
Income Statement
For the Year Ended December 31, 2021
(S in millions, except earnings per share)
Sales revenue
Cost of goods sold
Gross profit
Operating expenses:
Selling and administrative expense
Restructuring costs
Total operating expenses
Operating income
Other income:
Interest revenue
Gain on sale of investments
Total other income
Income from continuing operations before
income taxes
Income tax expense
Income from continuing operations
Discontinued operations:
Income from operations of discontinued
component (incl. gain on disposal of $30)
Income tax exnense

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