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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 ($ in millions, except earnings per share) Revenues and gains: Sales revenue Interest revenue Other income Total revenues and gains Expenses: Cost of goods sold Selling and administrative expense Income tax expense Total expenses Net Income Earnings per share $ 515 18 140 673 272 189 53 514 $ 159 $15.90

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 Interest revenue Other income Total revenues and gains Expenses: Cost of goods sold Selling and administrative expense Income tax expense Total expenses Net Income Earnings per share $ 515 18 140 673 272 189 53 514 $ 159 $15.90

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Gross profit Operating expenses: Total operating expenses Operating income Other income: ALEXIAN SYSTEMS, INC. Income Statement For the Year Ended December 31, 2021 ($ in millions except per share date) Total other income Income from continuing operations before income taxes Income from continuing operations Discontinued operations: Discontinued operations: Income on discontinued operations Net income Earnings per share: Net income +
Transcribed Image Text:Gross profit Operating expenses: Total operating expenses Operating income Other income: ALEXIAN SYSTEMS, INC. Income Statement For the Year Ended December 31, 2021 ($ in millions except per share date) Total other income Income from continuing operations before income taxes Income from continuing operations Discontinued operations: Discontinued operations: Income on discontinued operations Net income Earnings per share: Net income +
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 Interest revenue Other income Total revenues and gains Expenses: Cost of goods sold Selling and administrative expense Income tax expense Total expenses Net Income Earnings per share $ 515 18 140 673 272 189 53 514 $ 159 $15.90 Additional information: 1. Selling and administrative expense includes $40 million in restructuring costs. 2. Included in other income is $132 million in income from a discontinued operation. This consists of $90 million in operating income and a $42 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 $4 million to correct an error in the calculation of 2020's ending inventory. The amount is material. Required: Prepare a revised income statement for 2021 reflecting the additional facts. Use a multiple-step format. Assume that an income tax rate of 25% applies to all income statement items, and that 10 million shares of common stock were outstanding throughout the year. (Enter your answers in millions rounded to 2 decimal places. Round EPS answers to 2 decimal places.)
Transcribed Image Text:The preliminary 2021 income statement of Alexian Systems, Inc., is presented below. ALEXIAN SYSTEMS, INC. Income Statement For the Year Ended December 31, 2021 ($ in millions, except earnings per share) Revenues and gains: Sales revenue Interest revenue Other income Total revenues and gains Expenses: Cost of goods sold Selling and administrative expense Income tax expense Total expenses Net Income Earnings per share $ 515 18 140 673 272 189 53 514 $ 159 $15.90 Additional information: 1. Selling and administrative expense includes $40 million in restructuring costs. 2. Included in other income is $132 million in income from a discontinued operation. This consists of $90 million in operating income and a $42 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 $4 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.)
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