Wood Work Inc. and Modern Furniture Ltd. are two large home furnishing retailers, selling a wide range of furniture, major appliances, and home electronics. The following data were taken from the 2014 annual reports of both companies (amounts in thousands of Canadian dollars):
| |
Wood
Work |
Modern
Furniture |
| Sales revenue |
$1,762,220 |
$892,455 |
| Income taxes expense |
15,819 |
17,531 |
| Cash dividends declared |
3,073 |
28,677 |
| Operating expenses |
616,897 |
328,126 |
| Cost of sales |
854,517 |
505,174 |
| Finance expense (income), net |
56,322 |
(8,600) |
| Other income |
2,947 |
- |
| Number of common shares outstanding (in millions) |
125.0 |
79.0 |
Required:
1. Based on these data, prepare a multiple-step statement of earnings for each company for the year ending December 31, 2014 (showing both gross profit and earnings from operations). (Negative amounts should be indicated with a minus sign. Enter your answers in thousands of Canadian dollars except "No. of shares" which should be entered in million rounded to 1 decimal place. Round "EPS" answer to 2 decimal places.)
2. Compute the gross profit and the gross profit percentage for each company. (Enter your Gross Profit answers in thousands of Canadian dollars. Round your "Percentage" answers to 1 decimal place (i.e. 0.123 must be entered as 12.3.).)