Accounting

santos_accounting_p4-4.xlsx

Sheet1

Belinda Santos
P 4 - 4
Prepare a revised income statement. Income tax rate is 40%. There were 20,000 shares of common stock outstanding throughout the year.
1. Administrative expenses include $40,000. in restructuring costs. It also includes impairment of long-lived assets of 10,000.* Both are considered infrequent but NOT unusual.
2. Included in other income is an extraordinary loss of $90 million. The remaining amount is a gain on the sale of operating assets.
3. Cost of goods sold was increased by $5 million to correct an error in the calculation of 2012's ending inventory. The amount is mutual.
	Alexian Systems, Incl
	Income Statement
	For the Year Ended December 31,2013
	($ in millions, except earnings per share)
	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	$3.90