This is a variation of the previous problem focusing on income statement presentation.

Required:

Refer to the information presented in P 4-4. Prepare a revised income statement for 2018 reflecting the additional facts. Use a multiple-step format. Assume that an income tax rate of 40% applies to all income statement items, and that 20 million shares of common stock were outstanding throughout the year.

___________________________________ALEXIAN SYSTEMS, INC.

_______________________________________Income Statement

_______________________________For the Year Ended December 31, 2018

_______________________________($ 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