Recast this income statement into the format in the Sales , COGS, other costs = EBIT- interest expense...... format arriving at net income.

• • Make sure your revised income statement balances to the original
  • If they have one-time gains or non-operating losses you can build that into its own line. The example above is just an example.
• Now recast the upper portion of the income statement (Sales to EBIT) into a contribution margin format.
• • Using any detail provided do you best to estimate the split between variable costs and fixed costs. (note your assumptions somewhere in your spreadsheet).
  • Make sure your contribution margin income statement balances to your original IFRS one. You may need to plug something to get this to work.

Notes 2019 2018 (Note 10) REVENUE COST OF REVENUE GROSS MARGIN $ 98,909,025 12,978,173 85,930,852 $ 93,621,832 14,361,888 79,259,944 OPERATING EXPENSES Sales and marketing Research and development General and administration Share-based compensation 37,379,840 19,223,332 13,452,736 4,973,885 75,029,793 40,912,473 20,054,992 12,358,472 3,055,632 76,381,569 (Note 9(0)) OPERATING INCOME 10,901,059 2,878,375 145,872 OTHER INCOME (EXPENSE) Interest income, net Unrealized gain on short-term investments Foreign exchange loss 238,255 36,011 (65,175) 209,091 (164,394) (18,522) 11,110,150 2,859,853 NET INCOME BEFORE INCOME TAXES INCOME TAX (EXPENSE) RECOVERY NET INCOME AND TOTAL COMPREHENSIVE INCOME (Note 11) (3,531,000) $ 7,579,150 251,000 $ 3,110,853 BASIC INCOME PER SHARE (Note 9(k)) $ 0.19 $ 0.08 DILUTED INCOME PER SHARE (Note 9(k)) $ 0.18 $ 0.08 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC (Note 9(k)) 40,869,474 40,028.465