Question
The following information was taken from Riddell Ltd.'s adjusted trial balance as at April 30, 2016: Sales revenue $1,045,800 Interest revenue 7,200 Sales returns and
The following information was taken from Riddell Ltd.'s adjusted trial balance as at April 30, 2016:
Sales revenue | $1,045,800 |
Interest revenue | 7,200 |
Sales returns and allowances | 24,000 |
Sales discounts | 6,000 |
Cost of goods sold | 396,000 |
Distribution expenses | 230,250 |
Administration expenses | 90,250 |
Depreciation expense | 81,000 |
Interest expense | 16,500 |
Income tax expense | 56,700 |
Dividends declaredCommon shares | 15,000 |
Dividends declaredPreferred shares | 20,000 |
Required:
a.
Prepare a single-step statement of income for the year ended April 30, 2016.
b.
Prepare a multi-step statement of income for the year ended April 30, 2016.
c.
Determine Riddell's gross margin percentage for the year.
d.
If Riddell had 35,000 common shares outstanding throughout the year, determine the company's basic earnings per share.
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