AP4-12B (Statement of income presentation: basic EPS) The following information

Question

AP4-12B (Statement of income presentation: basic EPS) The following information was taken from Egeland Ltd.'s adjusted trial balance as at July 31, 2020: Sales revenue Interest expense Cost of goods sold Utilities expense Depreciation expense Distribution expenses Administration expenses Advertising expense Interest revenue Income tax expense Dividends declared- Common shares Dividends declared-Preferred shares $2,788,800 44,000 1,556,000 16,000 216,000 414,000 279,000 64,000 19,200 77,000 30,000 15,000 Required a. Prepare a single-step statement of income for the year ended July 31, 2020. b. Prepare a multi-step statement of income for the year ended July 31, 2020. 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.

Explanation / Answer

Single:

Multi

PARTICULARS AMOUNT($) NET SALES REVENUE $ 27,88,800.00 INTEREST REVENUE $        19,200.00 TOTAL REVENUE $ 28,08,000.00 EXPENSES: COST OF GOODS SOLD $ 15,56,000.00 DISTRIBUTION EXPENSES $    4,14,000.00 UTILITIES EXPENSE $        16,000.00 ADMINISTRATION $    2,79,000.00 INTERST EXPENSE $        44,000.00 DEPRECAITION EXPENSE $    2,16,000.00 INCOME TAX EXPENSES $        77,000.00 PREFERRED DIVIDEND $        15,000.00 ADVERTSING $        64,000.00 TOTAL EXPENSE: $ 26,81,000.00 NET INCOME $    1,27,000.00

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