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 2016 and 2015.

EXHIBIT 4.16 High Liner Foods Incorporated’s 2016 Consolidated Statement of Income

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 2016 and 2015. 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 2016 and 2015. Did the company’s net profit, as a percentage of its revenue, increase or decrease?

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HIGH LINER FOODS INCORPORATED Consolidated Statement of Income (in thousands of United States dollars, except per share amounts) Fifty-two weeks ended December 31, January 2, Notes 2016 2016 $ 956,016 $ 1,001,507 Revenues Cost of sales 753,179 799,843 Gross profit 201,664 202,837 Distribution expenses 48,037 43,610 Selling, general and administrative expenses 96,978 93,597 Impairment of property, plant and equipment 2,327 Business acquisition, integration and other expenses Results from operating activities 4,787 7,473 55,135 52,557 Finance costs 25 14,296 16,247 Income before income taxes 40,839 36,310 Income taxes Current 17 8,737 5,707 Deferred (848) 17 1,022 Total income tax expense 6,729 7,889 Net income 32,950 29,581 Earnings per common share Basic 18 1.07 0.96 Diluted 18 1.06 0.95 Weighted average number of shares outstanding Basic 18 30,917,412 30,818,804 Diluted 18 31,174,788 31,264,671