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 | $ | 437 |
Interest revenue | 5 | |
Other income | 127 | |
Total revenues and gains | 569 | |
Expenses: | ||
Cost of goods sold | 246 | |
Selling and administrative expense | 151 | |
Income tax expense | 43 | |
Total expenses | 440 | |
Net Income | $ | 129 |
Earnings per share | $ | 12.90 |
Additional information:
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.)
In the books of Alexian Systems,Inc
Revised Income Statement for the year ended 31.12.2021
Particulars | Amount($ in millions) | Amount($ in millions) |
(A) Revenues & Gains: | ||
Sales Revenue | 437 | |
Interest Revenue | 5 | |
Other Income (Gain on sale of investments) | 7 | |
Total Revenues & Gains | 449 | |
(B) Expenses: | ||
Cost of goods sold (246+10) | (256) | |
Selling & Administrative Expense | (124) | |
Restructing costs | (27) | |
Income Tax Expense [(449-256-151)*25%] | (10.5) | |
Total Expenses | (417.5) | |
(C) Income from continuing operations (A-B) | 31.5 | |
(D) Discontinued Operations: | ||
Income from Operations (Net of tax) [90-25%] | 67.5 | |
Gain on disposal (Net of tax) [30-25%] | 22.5 | 90 |
Net Income (C+D) | 121.5 | |
Earnings per share (121.5/10) [Net income/No. of shares] | 12.15 |
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