1. Preparing a Multi-step Income Statement and Interpreting the Gross Profit Percentage
Aeropostale, Inc., is a mall-based specialty retailer of casual apparel and accessories. The company concept is to provide the customer with a focused selection of high-quality, active-oriented fashions at compelling values. The items reported on its income statement for a recent year (ended March 31) are presented here (dollars in thousands) in alphabetical order:
|
Cost of goods sold
|
$1,071,349
|
|
Interest expense
|
580
|
|
Net revenue
|
1,985,531
|
|
Other selling, general and administrative expenses
|
400,883
|
|
Provision for income taxes
|
92,387
|
|
Weight average shares outstanding
|
60,832
|
Required: Prepare a multiple-step consolidated income statement with a presentation of basic earnings per share.
2. Preparing a Multi-step Income Statement and Interpreting the Gross Profit Percentage
Aeropostale, Inc., is a mall-based specialty retailer of casual apparel and accessories. The company concept is to provide the customer with a focused selection of high-quality, active-oriented fashions at compelling values. The items reported on its income statement for a recent year (ended March 31) are presented here (dollars in thousands) in alphabetical order:
|
Cost of goods sold
|
$1,171,349
|
|
Interest expense
|
620
|
|
Net revenue
|
2,025,531
|
|
Other selling, general and administrative expenses
|
393,883
|
|
Provision for income taxes
|
87,387
|
|
Weight average shares outstanding
|
76,832
|
Required: Prepare a multiple-step consolidated income statement with a presentation of basic earnings per share.
3. Preparing a Statement of Stockholders Equity
At the end of the 2014 annual reporting period, Barnard Corporation's balance sheet showed the following:
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BARNARD CORPORATION Balance Sheet At December 31, 2014
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|
Stockholder's equity
|
|
|
Contributed capital
|
|
|
Common stock (par $15; 5,800 shares)
|
$87,000
|
|
Paid-in capital
|
12,000
|
|
Total contributed capital
|
99,000
|
|
Retained earnings
|
50,000
|
|
Total stockholder's equity
|
$149,000
|
During 2015, the following selected transactions (summarized) were completed:
a. Sold and issued 1,200 shares of common stock at $20 cash per share (at year-end).
b. Determined net income, $45,000.
c. Declared and paid a cash dividend of $3 per share on the beginning shares outstanding.
Required: Prepare a statement of stockholder's equity for the year ended December 31, 2015.