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. The image depicts an income statement format for Alexian Systems, Inc. for the year ended December 31, 2021. The income statement is structured in a multiple-step format and is specified to be in millions, except per share data. The statement assumes a 25% income tax rate and notes that 10 million shares of common stock were outstanding throughout the year. The figures are to be rounded to two decimal places.Here's a breakdown of the components of the statement:1. **Gross Profit**: It is calculated but the specific values are not given.2. **Operating Expenses**: These are listed below the gross profit and contribute to the total operating expenses. Exact values are not provided in the template.3. **Total Operating Expenses**: The sum of all operating expenses, but specific figures are not filled in.4. **Operating Income**: The result after subtracting total operating expenses from gross profit. Values are not provided.5. **Other Income**: This is a section within the statement where additional income sources are accounted for. Specific entries are not included.6. **Total Other Income**: The sum of other income streams, with no specific values listed.7. **Income from Continuing Operations Before Income Taxes**: This includes operating income and total other income summed before tax deductions.8. **Income from Continuing Operations**: Reflects the results after income tax is applied to the income from continuing operations before taxes.9. **Discontinued Operations**: A section that would account for revenues and expenses related to operations that the company is no longer engaged in. Specific details and amounts are not enumerated.10. **Income on Discontinued Operations**: The net impact of discontinued operations, which is not filled in.11. **Net Income**: Represents the final profit after all expenses, taxes, and other income have been calculated and accounted for.12. **Earnings Per Share**: Detailed for both income from continuing operations and net income, though specific numbers are absent.This structured format enables users to easily identify and calculate the required financial metrics, facilitating efficient financial analysis once the necessary figures are filled in. 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: $435- Interest revenue: 4- Other income: 128- Total revenues and gains: 569**Expenses:**- Cost of goods sold: 247- Selling and administrative expense: 158- Income tax expense: 41- Total expenses: 446**Net Income:** $123**Earnings per share:** $12.30**Additional information:**1. Selling and administrative expense includes $28 million in restructuring costs.2. Included in other income is $120 million from a discontinued operation. This consists of $90 million in operating income and a $30 million gain on disposal. The remaining $8 million is from the gain on sale of investments.3. Cost of Goods Sold in 2021 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.)The bottom section is a table for the revised income statement, which includes placeholders for Gross profit, Operating expenses, and other financial details to be filled based on the given instructions and calculations.This information serves as an exercise in understanding income statement adjustments and financial reporting requirements.

Income Statement: An income statement is a financial statement that details the revenue and expenses…

The preliminary 2021 income statement of Alexian Systems, Inc., is presented below: ALEXIAN SYSTEMS, INC. Income Statement For the Year Ended December 31, 2021 (S in millions, except earnings per share) Revenues and gains: Sales revenue $ 435 Interest revenue 6 Other income 128 Total revenues and gains Expenses: Cost of goods sold Selling and administrative expense Income tax expense Total expenses 569 247 158 41 446 Net Income $ 123 Earnings per share $12.30 Additional information: 1. Selling and administrative expense includes $28 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 $8 million is from the gain on sale of investments. 3. Cost of Goods Sold in 2021 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.)

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q