I’m studying for my class and don’t understand how to answer this. Can you help me study?
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.
Cost of goods sold
Gain on sale of equipment
Loss from fire
Retained Earnings (1/1/12 balance)
current syllabus cites a previous edition of the textbook. The attached
update is correct for Winter and Spring—all current and upcoming terms.
1Dividends were declared and paid to Jackson, Inc. stockholders
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.
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
The following links provide sample formatting for income statements and statements of retained earnings.