Finance Question - Price Quote

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

The 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

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%