Question on accounting balance sheet 12/31/12. Jackson, Inc, accounting homework help
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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 |
1Dividends 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 be a subtotal
for income before taxes and then you should 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.
- http://www.accountingcoach.com/online-accounting-course/04Xpg04.html#income-statement-multiple-step
- http://accountingexplained.com/financial/statements/retained-earnings-statement
Submit your spreadsheet in the Module 3 folder. Ensure your work is accurate and reflects CSU-Global Guide to Writing and APA Requirements, following APA style, and properly referenced.
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