The following data were taken from the records of Milius Corporation on December 31,20B:
Items not included in above amounts: Estimated bad debt loss,1% of credit sales.Average income tax rate,25%.Number of shares of common shares outstanding,9,000
Requirements:
1.Based on the above data,prepare a multiple-step income statement (including gross margin,pretax profit,and earnings per share).
2a.How much was the gross margin?
b.What was the gross margin ratio?
c.Explain what these two amounts mean.

Question

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The Answer of The following data were taken from the records of Milius Corporation on December 31,20B:
Items not included in above amounts: Estimated bad debt loss,1% of credit sales.Average income tax rate,25%.Number of shares of common shares outstanding,9,000
Requirements:
1.Based on the above data,prepare a multiple-step income statement (including gross margin,pretax profit,and earnings per share).
2a.How much was the gross margin?
b.What was the gross margin ratio?
c.Explain what these two amounts mean.

The Following Data Were Taken from the Records of Milius