Assignment:
Alexian Systems Inc
Income Statement
For the Year ended December 31, 2011
| Revenues and gains: |
|
|
| Net Sales |
|
$ 425 |
| Interest |
|
$ 3 |
| Other income |
|
$ 126 |
| Total revenues and gains |
|
$ 554 |
|
|
|
| Expenses |
|
|
| Cost of goods sold |
|
$ 270 |
| Selling and administrative |
|
$ 154 |
| Income taxes |
|
$ 52 |
| Total expenses |
|
$ 476 |
| Net income |
|
$ 78 |
| Earnings per share |
|
$ 4 |
1. Selling and administration expenses include $26 milllion in restructuring costs.. .
2. Included in other income is an extraordinary gain of $120 million. The reamining $6 million is from the gain on the sale of investments.
3. Costs of goods sold was increased by $5 million to correct an err or in the calculation of 2010's ending inventory. The amount is material.
Prepare a revised income statement reflecting the additional facts. Use a multiple-step format. Assume that an income tax rate of 40% applies to aall income statement items and that 20 million shares of common stock were outstanding throughout the year.