The following information was taken from Egeland Ltd.’s adjusted trial balance as at July 31, 2016:
Sales revenue....................... $2,788,800
Interest expense....................... 44,000
Cost of goods sold.................... 1,556,000
Sales discounts....................... 16,000
Depreciation expense.................... 216,000
Distribution expenses.................... 414,000
Administration expenses................. 279,000
Sales returns and allowances.............. 64,000
Interest revenue....................... 19,200
Income tax expense.................... 44,000
Dividends declared—Common shares........... 30,000
Dividends declared—Preferred shares........... 15,000
Required:
a. Prepare a single-step statement of income for the year ended July 31, 2016.
b. Prepare a multi-step statement of income for the year ended July 31, 2016.
c. Determine Egeland’s gross margin percentage for the year.
d. If Egeland had 80,000 common shares outstanding throughout the year, determine the company’s basic earnings per share.