Reference no: EM133051353

Question - 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:

Selling and administrative expense includes $27 million in restructuring costs.

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 $7 million is from the gain on sale of investments.

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.