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Compute the gross profit and the gross profit percentage

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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.).)

Reference no: EM131756109

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