High Liner Foods Inc. processes and markets seafood products throughout Canada, the United States, and Mexico under
Question:
High Liner Foods Inc. processes and markets seafood products throughout Canada, the United States, and Mexico under the High Liner and Fisher Boy brands. It also produces private label products and supplies restaurants and institutions. Exhibit 4.16 presents High Liner Foods’ consolidated statement of income for 2020 and 2019.
Required
a. Has High Liner Foods used a single-step or a multi-step income statement? What aspects of the statement influenced your answer?
b. Calculate High Liner Foods’ gross profit percentage for 2020 and 2019. Did the company’s gross profit, as a percentage of its revenue, increase or decrease?
c. Calculate High Liner Foods’ net profit rate (net earnings divided by net sales) for 2020 and 2019. Did the company’s net profit, as a percentage of its revenue, increase or decrease?
Step by Step Answer:
Understanding Financial Accounting
ISBN: 9781119715474
3rd Canadian Edition
Authors: Christopher D. Burnley