1

2

A. compute the gross profit margin for 2016

a. 31.67%

b. 30.67%

c. 32.64%

d. 34.64%

B. compute the net profit margin for 2016

a. 5.89%

b. 6.35%

c. 6.16%

d. 6.73%

Valquez Inc is considering a 10% stock dividend, the extract from their Statement of Financial Position is below. $ Shareholders' Equity Common Shares Retained Earnings Total Shareholders' Equity 800,000 450,000 1,250,000 Number of Shares 70,000 Share price Dividend Declaration date Jun-30 $10 Record date Jul-12 $12 Distribution date Aug-01 $14 Assuming the stock dividend is completed, the extract would appear as: Shareholders' Equity Common Shares $884,000 Retained Earnings $366,000 Total Shareholders' Equity $1,250,000 Number of Shares Shareholders' Equity 77,000 Distribution date Aug-01 $14 Assuming the stock dividend is completed, the extract would appear as: Shareholders' Equity Common Shares Retained Earnings Total Shareholders' Equity $884,000 $366,000 $1,250,000 77,000 Number of Shares Shareholders' Equity Common Shares Retained Earnings Total Shareholders Equity $898,000 $352,000 $1,250,000 77,000 Number of Shares Shareholders' Equity Common Shares Retained Earnings Total Shareholders' Equity 800,000 450,000 1,250,000 63,000 Number of Shares Shareholders' Equity Common Shares Retained Earnings Total Shareholders' Equity $870,000 $380,000 $1,250,000 Number of Shares 77,000 Extracts from the Financial Statements of Canadian Tire Canadian Tire Extract from Statement of Income Millions of $ 2016 2015 Revenue $12,681.00 $12,279.60 Cost of Goods Sold $8,288.50 $8,144.30 Gross Profit $4,392.50 $4,135.30 Net Profit $747.50 $735.90 Extract from Statement of Financial Position Millions of s 2016 2015 Current Assets Total Assets $8,637.70 $8,692.30 $15,302.80 $14,987.70 Total Liabilities Total Equity Total Liabilities & Shareholders Equity Compute the Gross Profit Margin for 2016 $9,565.50 $9,198.10 $5,737.30 $5,789.70 $15,302.80 $14,987.80