# Income Statements and Profitability Ratios

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Income Statements and Profitability Ratios

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

Required:

1.     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.

2.     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.

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%

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

Submit your spreadsheet in the Module 3 folder. Ensure your work is accurate and reflects APA Requirements.

• Posted: 4 years ago
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• Budget: \$15

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### Financial Statement Critical thinking

ASSIGNMENT IS DUE SATURDAY 6/18 AT 4 PM EASTERN TIME

FOR TOM MUTUNGA ONLYYYYYYYYYY

Assignment Choice #1

In this module, you were introduced to the income statement and profitability …

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### Critical Thinking: Income Statements and Profitability Ratios

Attached

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### FIN: Income Statements and Profitability Ratios (Great Quality work only)

Elements of the Income Statement: Income Statements and Profitability Ratios

In this module, you were introduced to the income statement and profitability ratios. In this assignment, you will …

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### Income Statements and Profitability Ratios

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 …

• Rated 2 times

### Finance Assignment

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 …

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### Income Statement Paper APA format

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 …

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### Selected accounts for Jackson, Inc.

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 …

• Not rated

### Financial Statement

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 …

• Not rated

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

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 …

• Not rated

### Jackson Inc

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 …