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

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. Using High Liner Foods' consolidated statements of income for 2009, which appear in Exhibit 4-12, answer the following questions:
In Exhibit 4-12
CONSOLIDATED STATEMENTS OF INCOME
(in thousands of Canadian dollars, except per share information)

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 rate (gross profit divided by net sales) for 2009 and 2008. 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 2009 and 2008. Did the company's net profit, as a percentage of its revenue, increase or decrease?
d. High Liner Foods reports both "basic" and "diluted" earnings per share (EPS). Briefly explain the difference between these two terms and why the figures for diluted EPS are lower than those for basic EPS.

For the fifty-twoFor the fifty-three weeks ended weeks ended January 2, 2010 Jnry32 Sales Cost of sales (notes 2b and 16) Distribution expenses (note 2b) Gross prolit Foreign exchange gain (loss) Selling. general and administrative expenses (note 2b) Business acquisition integration costs Amortization of intangible assets (note 4) Interest expense: 627,186 492,564 32,352 102,270 264 (65,571) (460) (1,499) S 615.993 482.454 36,997 96.542 (1.234) (63,860) (4.879) (1.383) 1,680) 3,765) (492) (922) 28,145 (2,695) (3,768) (402) (84) 18,237 Short-term Long-term Loss on asset disposals Non-operating transactions Income before income taxes Income taxes (note 9) (2.548) 5,850) (8,398) (3.002) (1,043) (4,045) S 14.192 Current Future Total income taxes Net income S 19,74 PER SHARE EARNINGS Earnings per common share (note 10) Basic Diluted S1.07 S 1.07 $ 0.88 S 0.77 Weighted average common shares outstanding (note 10) Basic Diluted 18,384,940 18,396,067 15,059.296 18,203.100

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