Aeropostale, Inc., is a mall-based specialty retailer of casual apparel and acce

Question

Aeropostale, Inc., is a mall-based specialty retailer of casual apparel and accessories. The company concept is to provide the customer with a focused selection of high-quality, active-oriented fashions at compelling values. The items reported on its income statement for a recent year (ended March 31) are presented here (dollars in thousands) in alphabetical order: Cost of goods sold Interest expense Net revenue Other selling, general, and administrative expenses Provision for income taxes Weighted average shares outstanding $1,201,349 570 1,895,531 394,883 82,387 60,832 Required: a. Prepare a multiple-step consolidated income statement with a presentation of basic earnings per share. (Enter your answers in thousands not in dollars. Round "Basic earnings per share" to 2 decimal places.) AEROPOSTALE, INC Consolidated Statement of Income For Year Ended March 31, Current Year (In Thousands Except Per Share Amounts) Total operating expenses

Explanation / Answer

A AEROPOSTALE, INC. Consolidated Statement of Income For the Year ended March 31, Current Year Net Revenue 1895531 Less: Cost of Goods Sold 1201349 Gross Profit 694182 Operating Expenses: Other Selling, General and Administrative Expense 394883 Total Operating Expenses 394883 Operating Income 299299 Less: Interest Expense 570 Income Before Income Tax 298729 Less: Provision for Income Taxes 82387 Net Income 216342 Earning Per Share: Basic Earning Per Share 3.56 Weighted Average Shares Outstanding 60832 B Gross Profit Percentage: Gross Profit(A) 694182 Net Revenue(B) 1895531 Gross Profit Percentage(A/B) 36.62% Working Notes: Earning Per Share: Net Income(A) 216342 Weighted Average Shares Outstanding(B) 60832 Basic Earning Per Share(A/B) 3.56

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