1. Prepare an income statement using the following information: Gross profit m
- Prepare an income statement using the following information:
Gross profit margin 42%
Cost of goods sold $5,800
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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
