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 declared—Common shares.............. 15,000
Dividends declared—Preferred 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.