The Following Data Were Taken from the Records of Milius

question 63

Short Answer

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.

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