Giklan Activewear Inc. is a marketer and manufacturer of quality T-shirts, sport shirts, and fleeces. It sells the apparel to wholesale distributors as undecorated shirts, which are subsequently decorated with designs and logos.
Using Gildan Activewear's consolidated statements of earnings and comprehensive income, which appear in Exhibit 4-13, answer the questions below:
In Exhibit 4-13
CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME
Years ended October 4, 2009, October 5,2008 and September 30, 2007
(in thousands of U.S. dollars, except per share data)

a. Has Gildan Activewear used a single-step or a multi-step income statement? What aspects of the statement influenced your answer?
b. Calculate Gildan Activewear's gross profit rate (gross profit divided by net sales) for 2009, 2008, and 2007. Did the company's gross profit, as a percentage of its revenue, increase or decrease?
c. Calculate Gildan Activewear's net profit rate (net earnings divided by net sales) for 2009, 2008, and 2007. Did the company's net profit, as a percentage of its revenue, increase or decrease?
d. Gildan Activewear reported both "basic" and "diluted" earnings per share (EPS). Briefly explain the difference between these two terms and why each of these amounts may be important to users.

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2009 2008 2007 Net sales Cost of sales Gross profit Selling, general and administrative expenses Restructuring and other charges (note 16) Operating income Financial (income) expense, net (note 19 b)) $ 1,038,319 1249,71 964,429 705,546 258,883 99,926 28,012 30,945 5,420 278 24,247 34,400 4815) $ 95,329146,350129,062 807,986 230,333 34,785 6,199 89,349 (304) 911,242 338,469 42.760 5,489 90,220 9.240 230 80,750 Non-controlling interest in consolidated joint venture 110 89,543 5,786) Earnings before income taxes Income taxes (note 14) Net earnings and comprehensive income Earnings per share (note I5): Basic EPS Diluted EPS $ 0.79 2 1.07 1.06 0.79 .20