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onnect Portion) i 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 $ 540 19 137 696 285 191 55 531 $ 165 $16.50 Saved Additional information: 1. Selling and administrative expense includes $42 million in restructuring costs. 2. Included in other income is $130 million in income from a discontinued operation. This consists of $90 million in operating income and a $40 million gain on disposal. The remaining $7 million is from the gain on sale of investments. 3. Cost of Goods Sold in 2024 includes an increase of $10 million to correct an understatement of Cost of Goods Sold in 2023. The amount is material. Required: Prepare a revised income statement for 2024 reflecting the additional facts. Use a multiple-step format. Assume that an income tax rate of 25% applies to all income statement items, and that 10 million shares of common stock were outstanding throughout the year. Note: Enter your answers in millions rounded to 2 decimal places. Round EPS answers to 2 decimal places. ALEXIAN SYSTEMS, INCORPORATED Income Statement For the Year Ended December 31, 2024 ($ in millions except per share data)

onnect Portion) i 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 $ 540 19 137 696 285 191 55 531 $ 165 $16.50 Saved Additional information: 1. Selling and administrative expense includes $42 million in restructuring costs. 2. Included in other income is $130 million in income from a discontinued operation. This consists of $90 million in operating income and a $40 million gain on disposal. The remaining $7 million is from the gain on sale of investments. 3. Cost of Goods Sold in 2024 includes an increase of $10 million to correct an understatement of Cost of Goods Sold in 2023. The amount is material. Required: Prepare a revised income statement for 2024 reflecting the additional facts. Use a multiple-step format. Assume that an income tax rate of 25% applies to all income statement items, and that 10 million shares of common stock were outstanding throughout the year. Note: Enter your answers in millions rounded to 2 decimal places. Round EPS answers to 2 decimal places. ALEXIAN SYSTEMS, INCORPORATED Income Statement For the Year Ended December 31, 2024 ($ in millions except per share data)

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 74E
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onnect Portion) i 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 $ 540 19 137 696 285 191 55 531 $ 165 $16.50 Saved Additional information: 1. Selling and administrative expense includes $42 million in restructuring costs. 2. Included in other income is $130 million in income from a discontinued operation. This consists of $90 million in operating income and a $40 million gain on disposal. The remaining $7 million is from the gain on sale of investments. 3. Cost of Goods Sold in 2024 includes an increase of $10 million to correct an understatement of Cost of Goods Sold in 2023. The amount is material. Required: Prepare a revised income statement for 2024 reflecting the additional facts. Use a multiple-step format. Assume that an income tax rate of 25% applies to all income statement items, and that 10 million shares of common stock were outstanding throughout the year. Note: Enter your answers in millions rounded to 2 decimal places. Round EPS answers to 2 decimal places. ALEXIAN SYSTEMS, INCORPORATED Income Statement For the Year Ended December 31, 2024 ($ in millions except per share data)
Transcribed Image Text:onnect Portion) i 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 $ 540 19 137 696 285 191 55 531 $ 165 $16.50 Saved Additional information: 1. Selling and administrative expense includes $42 million in restructuring costs. 2. Included in other income is $130 million in income from a discontinued operation. This consists of $90 million in operating income and a $40 million gain on disposal. The remaining $7 million is from the gain on sale of investments. 3. Cost of Goods Sold in 2024 includes an increase of $10 million to correct an understatement of Cost of Goods Sold in 2023. The amount is material. Required: Prepare a revised income statement for 2024 reflecting the additional facts. Use a multiple-step format. Assume that an income tax rate of 25% applies to all income statement items, and that 10 million shares of common stock were outstanding throughout the year. Note: Enter your answers in millions rounded to 2 decimal places. Round EPS answers to 2 decimal places. ALEXIAN SYSTEMS, INCORPORATED Income Statement For the Year Ended December 31, 2024 ($ in millions except per share data)
Gross profit Operating expenses: Total operating expenses Operating income Other income: ALEXIAN SYSTEMS, INCORPORATED Income Statement For the Year Ended December 31, 2024 ($ in millions except per share data) Total other income Income from continuing operations before income taxes Income from continuing operations Discontinued operations: Income on discontinued operations Net income Earnings per share: Net income 0.00 0.00 0.00 0.00 0.00 0.00
Transcribed Image Text:Gross profit Operating expenses: Total operating expenses Operating income Other income: ALEXIAN SYSTEMS, INCORPORATED Income Statement For the Year Ended December 31, 2024 ($ in millions except per share data) Total other income Income from continuing operations before income taxes Income from continuing operations Discontinued operations: Income on discontinued operations Net income Earnings per share: Net income 0.00 0.00 0.00 0.00 0.00 0.00
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