Reference no: EM131756109

Wood Work Inc. and Modern Furniture Ltd. are two large home furnishing retailers, selling a wide range of furniture, major appliances, and home electronics. The following data were taken from the 2014 annual reports of both companies (amounts in thousands of Canadian dollars):

	Wood Work	Modern Furniture
Sales revenue	$1,762,220	$892,455
Income taxes expense	15,819	17,531
Cash dividends declared	3,073	28,677
Operating expenses	616,897	328,126
Cost of sales	854,517	505,174
Finance expense (income), net	56,322	(8,600)
Other income	2,947	-
Number of common shares outstanding (in millions)	125.0	79.0

Required:

1. Based on these data, prepare a multiple-step statement of earnings for each company for the year ending December 31, 2014 (showing both gross profit and earnings from operations). (Negative amounts should be indicated with a minus sign. Enter your answers in thousands of Canadian dollars except "No. of shares" which should be entered in million rounded to 1 decimal place. Round "EPS" answer to 2 decimal places.)

2. Compute the gross profit and the gross profit percentage for each company. (Enter your Gross Profit answers in thousands of Canadian dollars. Round your "Percentage" answers to 1 decimal place (i.e. 0.123 must be entered as 12.3.).)