Jackson, Inc._Income statement_Statement of equity_Ratio analysis

$10.00

Description

In this module, you were
introduced to the income statement and profitability ratios. In this
assignment, you will use this information to create an income statement and
then analyze it for profitability.

Selected accounts for
Jackson, Inc. are listed below along with their balances before closing the
year of 12/31/12. Jackson, Inc. is a firm that manufactures wireless mouse
systems for laptops. Use this information to complete the required elements
below.

Interest
expense $
2,000
Sales
revenue 297,000
Selling
expenses 38,200

Administrative
expenses 16,700
Cost
of goods sold 162,300
Dividends1
12,200

Gain
on sale of equipment 3,600
Loss
from fire 7,500
Retained
Earnings (1/1/12 balance) 335,000
Tax
expense 22,800

Dividends
were declared and paid to Jackson, Inc. stockholders

Required:

On a
spreadsheet, prepare a multistep Income Statement for the year ending 12/31/12
with proper heading. See link below for sample income statement. Near the
bottom of your income statement should have a subtotal for Income before taxes
and then subtract taxes to compute Net income. Net income should have a double
underline.
On the
same spreadsheet, prepare a Statement of Retained Earnings for the year ending
12/31/12 with proper heading. See link below for sample statement of retained
earnings. There are no adjustments to retained earnings and ending retained
earnings should have a double underline.

On the
same spreadsheet, compute the gross profit margin, operating income margin, and
net profit margin for 2012, showing the numerator and denominator for all
ratios. Take ratios out to the nearest hundredth of a percentage (e.g., 33.33%).

On the same spreadsheet,
write a paragraph analyzing each of the profitability ratios for Jackson, Inc.
given the following information from previous years and competitors.
Gross
profit margin Operating income margin Net profit margin
Jackson,
2011 47.22% 26.52% 17.75%
Jackson,
2010 48.87% 25.43% 17.03%
Competitor,
2012 43.22% 31.20% 21.14%

The
following links provide sample formatting for income statements and statements
of retained earnings.

.accountingcoach.com/online-accounting-course/04Xpg04.html#income-statement-multiple-step”>http://www.accountingcoach.com/online-accounting-course/04Xpg04.html#income-statement-multiple-step

http://accountingexplained.com/financial/statements/retained-earnings-statement

Submit
your spreadsheet

Reviews

There are no reviews yet.

Be the first to review “Jackson, Inc._Income statement_Statement of equity_Ratio analysis”

Your email address will not be published. Required fields are marked *

Jackson, Inc._Income statement_Statement of equity_Ratio analysis

$10.00

Description

In this module, you were
introduced to the income statement and profitability ratios. In this
assignment, you will use this information to create an income statement and
then analyze it for profitability.

Selected accounts for
Jackson, Inc. are listed below along with their balances before closing the
year of 12/31/12. Jackson, Inc. is a firm that manufactures wireless mouse
systems for laptops. Use this information to complete the required elements
below.

Interest
expense $
2,000
Sales
revenue 297,000
Selling
expenses 38,200

Administrative
expenses 16,700
Cost
of goods sold 162,300
Dividends1
12,200

Gain
on sale of equipment 3,600
Loss
from fire 7,500
Retained
Earnings (1/1/12 balance) 335,000
Tax
expense 22,800

Dividends
were declared and paid to Jackson, Inc. stockholders

Required:

On a
spreadsheet, prepare a multistep Income Statement for the year ending 12/31/12
with proper heading. See link below for sample income statement. Near the
bottom of your income statement should have a subtotal for Income before taxes
and then subtract taxes to compute Net income. Net income should have a double
underline.
On the
same spreadsheet, prepare a Statement of Retained Earnings for the year ending
12/31/12 with proper heading. See link below for sample statement of retained
earnings. There are no adjustments to retained earnings and ending retained
earnings should have a double underline.

On the
same spreadsheet, compute the gross profit margin, operating income margin, and
net profit margin for 2012, showing the numerator and denominator for all
ratios. Take ratios out to the nearest hundredth of a percentage (e.g., 33.33%).

On the same spreadsheet,
write a paragraph analyzing each of the profitability ratios for Jackson, Inc.
given the following information from previous years and competitors.
Gross
profit margin Operating income margin Net profit margin
Jackson,
2011 47.22% 26.52% 17.75%
Jackson,
2010 48.87% 25.43% 17.03%
Competitor,
2012 43.22% 31.20% 21.14%

The
following links provide sample formatting for income statements and statements
of retained earnings.

.accountingcoach.com/online-accounting-course/04Xpg04.html#income-statement-multiple-step”>http://www.accountingcoach.com/online-accounting-course/04Xpg04.html#income-statement-multiple-step

http://accountingexplained.com/financial/statements/retained-earnings-statement

Submit
your spreadsheet

Reviews

There are no reviews yet.

Be the first to review “Jackson, Inc._Income statement_Statement of equity_Ratio analysis”

Your email address will not be published. Required fields are marked *