Question on accounting balance sheet 12/31/12. Jackson, Inc, accounting homework help

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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.

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 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.

	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.

• 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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