# 1. Prepare an income statement using the following information: Gross profit m

Jun 19th, 2015
Anonymous
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Price: \$30 USD

Question description

1. Prepare an income statement using the following information:

Gross profit margin  42%

Cost of goods sold  \$5,800

Tax rate  30%

Operating profit  \$600

2.  The following information is available for Brown Theater Company.  Analyze the gross profit margin making any calculations deemed necessary.

2012  2011  2010

Movie ticket sales    \$  500     \$  450  \$420

Concession sales    800    600    500

Total sales    \$1,300       \$1,050  \$920

Movie rental expense       480    400    380

Cost of concession products    350    300    280

Gross profit      \$  470     \$  350      \$260

3.  Use the following information to analyze the PQ Company.  Calculate any profit measures deemed necessary in order to discuss the profitability of the company.

PQ Company Income Statements

For the Years Ended Dec. 31, 2012 and 2011

2012    2011

Net sales  \$174,000  \$167,000

COGS      114,000    115,000

Gross profit  \$  60,000  \$  52,000

General and administrative expenses      54,000    46,000

Operating profit  \$  6,000  \$  6,000

Interest expense    (1,000)    (1,000)

Earnings before taxes    \$  5,000  \$  5,000

Income taxes      2,000    2,000

Net income  \$  3,000  \$  3,000

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