1. Based on these data, prepare a multiple-step statement of earnings (showing both gross profit and earnings from operations).2. What was the amount of gross profit? Vi'hat was the gross profit percentage? Explain what these two numbers mean.

Required

1. Based on these data, prepare a multiple-step statement of earnings for each company for the year ending December 31, 2017 (showing both gross profit and earnings from operations).2. Compute the gross profit and the gross profit percentage for each company. Explain what these two numbers mean. What do you believe accounts for the difference between the gross profit percentages of both companies?

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Wood Work Modern Furniture Sales revenue Income taxes expense Cash dividends declared Operating expenses Cost of sales Finance expense (income), net Other income Number of common shares outstanding (in millions) $1,341,080 $682,183 16,901 28,047 15,189 2,443 511,897 223,126 748,047 34,272 398,704 (3,350) 2,317 120.8 70.0