The preliminary 2016 income statement of Alexian Systems, Inc., is presented below: ALEXIAN SYSTEMS, INC. Income Statement For the Year Ended December 31, 2016 ($ in millions, except earnings per share) Revenues and gains: Net sales $ 425 Interest 3 126 Other income Total revenues and gains Expenses: Cost of goods sold Selling and administrative Income taxes 554 270 154 52 Total expenses 476 $ 78 Net Income $3.90 Earnings per share
The preliminary 2016 income statement of Alexian Systems, Inc., is presented below: ALEXIAN SYSTEMS, INC. Income Statement For the Year Ended December 31, 2016 ($ in millions, except earnings per share) Revenues and gains: Net sales $ 425 Interest 3 126 Other income Total revenues and gains Expenses: Cost of goods sold Selling and administrative Income taxes 554 270 154 52 Total expenses 476 $ 78 Net Income $3.90 Earnings per share
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Additional Information: 1. Selling and administrative expenses include $26 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 $6 million is from the gain on sale of investments. 3. Cost of goods sold was increased by $5 million to correct an error in the calculation of 2015’s ending inventory. The amount is material. Required: For each of the three additional facts listed in the additional information, discuss the appropriate presentation of the item described. Do not prepare a revised statement.
Transcribed Image Text:The preliminary 2016 income statement of Alexian Systems, Inc., is presented below:
ALEXIAN SYSTEMS, INC.
Income Statement
For the Year Ended December 31, 2016
($ in millions, except earnings per share)
Revenues and gains:
Net sales
$ 425
Interest
3
126
Other income
Total revenues and gains
Expenses:
Cost of goods sold
Selling and administrative
Income taxes
554
270
154
52
Total expenses
476
$ 78
Net Income
$3.90
Earnings per share
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