Selling and administrative expenses include 39 million in


The preliminary 2013 income statement of Alexian Systems, Inc., is presented below:

ALEXIAN SYSTEMS, INC.
Income Statement
For the Year Ended December 31, 2013
($ in millions, except earnings per share)
Revenues and gains:
Net sales $ 460
Interest 16
Other income 180

Total revenues and gains 656

Expenses:
Cost of goods sold 300
Selling and administrative 156
Income taxes 60

Total expenses 516
Net Income $ 140

Earnings per share $ 4.00

Additional information:
1. Selling and administrative expenses include $39 million in restructuring costs.
2. Included in other income is an extraordinary gain of $170 million. The remaining $10 million is from the gain on sale of investments.
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 material.

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Accounting Basics: Selling and administrative expenses include 39 million in
Reference No:- TGS0657103

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