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Jackson, Inc._Income statement_Statement of equity_Ratio analysis




Question;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.;;Submit;your spreadsheet


Paper#37461 | Written in 18-Jul-2015

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