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##### Jackson, Inc income statement In this module, you were introduced to the income statement and profitability

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Jackson, Inc income statement 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;1Dividends were declared and paid to Jackson, Inc. stockholders.;Requirements;1. On a spreadsheet, prepare a multistep Income Statement for the year ending 12/31/12 with proper heading. 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.;2. On the same spreadsheet, prepare a Statement of Retained Earnings for the year ending 12/31/12 with proper heading. There are no adjustments to retained earnings and ending retained earnings should have a double underline.;3. 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%).;4. 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%

Paper#80572 | Written in 18-Jul-2015

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