Cost of goods sold was increased by 7 million to correct an

Reference no: EM13482500

The preliminary 2013 income statement of Alexian Systems, Inc., is presented below:

ALEXIAN SYSTEMS, INC. Income Statement For the Year Ended December 31, 2013 ($ in millions, except earnings per share)
Revenues and gains:
Net sales	$	442
Interest		20
Other income		143

Total revenues and gains		605

Expenses:
Cost of goods sold		287
Selling and administrative		158
Income taxes		64

Total expenses		509
Net Income	$	96

Earnings per share	$	4.80

Additional information:
1.	Selling and administrative expenses include $43 million in restructuring costs.
2.	Included in other income is an extraordinary gain of $135 million. The remaining $8 million is from the gain on sale of investments.
3.	Cost of goods sold was increased by $7 million to correct an error in the calculation of 2012's ending inventory. The amount is material.

Required:

Prepare a revised income statement for 2013 reflecting the additional facts. Use a multiple-step format. Assume that an income tax rate of 40% applies to all income statement items, and that 20 million shares of common stock were outstanding throughout the year. (Enter your answers in millions except earnings per share. Round EPS answers to 2 decimal places.)

Reference no: EM13482500

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Cost of goods sold was increased by 7 million to correct an

Reference no: EM13482500

Reference no: EM13482500

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