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?

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HIGH LINER FOODS INC. Consolidated Statements of Income (in thousands of United States dollars, except per share amounts) Sales Cost of sales Gross profit Distribution expenses Selling, general and administrative expenses Impairment of property, plant and equipment Business acquisition, integration and other expenses Results from operating activities Finance costs Income before income taxes Income taxes Current Deferred Income tax expense Net income Earnings per common share Basic Diluted Weighted average number of shares outstanding Basic Diluted Notes 24 8 28 18 18 18 Fifty-three weeks ended 20 20 $ $ 20 $ 20 $ January 2, 2021 827,453 649,529 177,924 45,076 73,736 2,957 56,155 19,483 36,672 6,535 1,335 7,870 Fifty-three weeks ended December 28, 2019 33,853,881 34,519,305 $ 28,802 $ 942,224 756,364 185,860 45,759 90,019 974 1,572 47,536 33,012 14,524 3,356 879 4,235 10,289 0.85 $ 0.31 0.83 $ 0.30 33,801,217 34,195,365