The preliminary 2024 income statement of Alexian Systems, Incorporated, is presented below: ALEXIAN SYSTEMS, INCORPORATED Income Statement For the Year Ended December 31, 2024 ($ 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 Additional information: $ 517 13 130 660 250 218 48 516 $144 $ 14.40 1. Selling and administrative expense includes $35 million in restructuring costs. 2. Included in other income is $124 million in income from a discontinued operation. This consists of $90 million in operating income and a $34 million gain on disposal. The remaining $6 million is from the gain on sale of investments. 3. Cost of Goods Sold in 2024 includes an increase of $4 million to correct an understatement of Cost of Goods Sold in 2023. The amount is material. Required: Prepare a revised income statement for 2024 reflecting the additional facts. Use a multiple-step format. Assume that an income tax rate of 25% applies to all income statement items, and that 10 million shares of common stock were outstanding throughout the year. Note: Enter your answers in millions rounded to 2 decimal places. Round EPS answers to 2 decimal places. Gross profit Operating expenses: ALEXIAN SYSTEMS, INCORPORATED Income Statement For the Year Ended December 31, 2024 ($ in millions except per share data) Total operating expenses Operating income Other income: 0.00 0.00
The preliminary 2024 income statement of Alexian Systems, Incorporated, is presented below: ALEXIAN SYSTEMS, INCORPORATED Income Statement For the Year Ended December 31, 2024 ($ 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 Additional information: $ 517 13 130 660 250 218 48 516 $144 $ 14.40 1. Selling and administrative expense includes $35 million in restructuring costs. 2. Included in other income is $124 million in income from a discontinued operation. This consists of $90 million in operating income and a $34 million gain on disposal. The remaining $6 million is from the gain on sale of investments. 3. Cost of Goods Sold in 2024 includes an increase of $4 million to correct an understatement of Cost of Goods Sold in 2023. The amount is material. Required: Prepare a revised income statement for 2024 reflecting the additional facts. Use a multiple-step format. Assume that an income tax rate of 25% applies to all income statement items, and that 10 million shares of common stock were outstanding throughout the year. Note: Enter your answers in millions rounded to 2 decimal places. Round EPS answers to 2 decimal places. Gross profit Operating expenses: ALEXIAN SYSTEMS, INCORPORATED Income Statement For the Year Ended December 31, 2024 ($ in millions except per share data) Total operating expenses Operating income Other income: 0.00 0.00
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 19BEA
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![The preliminary 2024 income statement of Alexian Systems, Incorporated, is presented below:
ALEXIAN SYSTEMS, INCORPORATED
Income Statement
For the Year Ended December 31, 2024
($ 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
$ 517
13
130
660
250
218
48
516
$144
$ 14.40
Earnings per share
Additional information:
1. Selling and administrative expense includes $35 million in restructuring costs.
2. Included in other income is $124 million in income from a discontinued operation. This consists of $90 million in operating
income and a $34 million gain on disposal. The remaining $6 million is from the gain on sale of investments.
3. Cost of Goods Sold in 2024 includes an increase of $4 million to correct an understatement of Cost of Goods Sold in 2023. The
amount is material.
Required:
Prepare a revised income statement for 2024 reflecting the additional facts. Use a multiple-step format. Assume that an income tax
rate of 25% applies to all income statement items, and that 10 million shares of common stock were outstanding throughout the year.
Note: Enter your answers in millions rounded to 2 decimal places. Round EPS answers to 2 decimal places.
Gross profit
Operating expenses:
ALEXIAN SYSTEMS, INCORPORATED
Income Statement
For the Year Ended December 31, 2024
($ in millions except per share data)
Total operating expenses
Operating income
Other income:
0.00
0.00
Total other income
0.00
Income from continuing operations before income taxes
0.00
Income from continuing operations
0.00
Discontinued operations:
Income on discontinued operations
Net income
Earnings per share:
Net income
0.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe15069a3-d28b-4981-a0f9-3c67039861f9%2Fe059b224-8798-431c-b890-8f9627e895ae%2Fqnummre_processed.png&w=3840&q=75)
Transcribed Image Text:The preliminary 2024 income statement of Alexian Systems, Incorporated, is presented below:
ALEXIAN SYSTEMS, INCORPORATED
Income Statement
For the Year Ended December 31, 2024
($ 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
$ 517
13
130
660
250
218
48
516
$144
$ 14.40
Earnings per share
Additional information:
1. Selling and administrative expense includes $35 million in restructuring costs.
2. Included in other income is $124 million in income from a discontinued operation. This consists of $90 million in operating
income and a $34 million gain on disposal. The remaining $6 million is from the gain on sale of investments.
3. Cost of Goods Sold in 2024 includes an increase of $4 million to correct an understatement of Cost of Goods Sold in 2023. The
amount is material.
Required:
Prepare a revised income statement for 2024 reflecting the additional facts. Use a multiple-step format. Assume that an income tax
rate of 25% applies to all income statement items, and that 10 million shares of common stock were outstanding throughout the year.
Note: Enter your answers in millions rounded to 2 decimal places. Round EPS answers to 2 decimal places.
Gross profit
Operating expenses:
ALEXIAN SYSTEMS, INCORPORATED
Income Statement
For the Year Ended December 31, 2024
($ in millions except per share data)
Total operating expenses
Operating income
Other income:
0.00
0.00
Total other income
0.00
Income from continuing operations before income taxes
0.00
Income from continuing operations
0.00
Discontinued operations:
Income on discontinued operations
Net income
Earnings per share:
Net income
0.00
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