Question

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 $ 1,733,916
Interest expense 417
Other selling, general, and administrative expenses 494,829
Weighted average shares outstanding 81,208
Net revenue } & 2,342,260
Provision for income taxes 43, 583
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.

Answer 1

The gross profit percentage 44.25%.

Consolidated Statement of Income

Net revenue                                                                        =  1975531

Cost of goods Sold                                                              = 1,101,349

Gross margin another selling general, & admin                391,883

Operating Income                                                               482,299

Interest                                                                                 540

Income before taxes                                                         481,759

provision  or Income Taxes                                              88,387

Net income                                                                    393,372

Basic per income 373,372/70,832                     =   5.55

weighted average shares outstanding             =   70,832

Gross profit percentage = Gross profit /Net revenue

                                       = $874,182 / $1975,531

                                       = 44.25%

Learn more about Net revenue here:-brainly.com/question/25623677

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