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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.

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 be a subtotal for income before taxes and then you should 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.

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.

11 days ago

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