
Preparing a Classified (Multiple-Step) Income Statement and Interpreting the Gross Profit
LO5-3 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) axe presented here (dollars in thousands) m alphabetical order
Cost of goods sold | $1,733,916 |
Interest expense | 417 |
Net revenue | 2,342,260 |
Other selling, general, and administrative expenses | 494,829 |
Provision for income taxes | 43,583 |
Weighted average shares outstanding | 81,208 |
Required:
Prepare a classified (multiple-step) consolidated income statement (showing gross profit, operating income, and income before income taxes). Include a presentation of basic earnings per share. What is the gross profit percentage? Explain its meaning.

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Chapter 5 Solutions
Financial Accounting
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