Figuring a contribution format income statement

crhenderson07 · #1 Mar 11, 2008, 06:43 PM

I want to know how to develop a contribution format income statement, given only part of the needed information. The info is as follows:

Quarter1 Quarter2 Quarter3
Net sales 44116 33836

cost of sales 34429 33836

gross profit 9687 9990

Sell. gen/admin
expenses 6123 6184

operating income 3564 3806

required:

prepare a contribution format income statement for the third quarter assuming that the company's net sales were 45,500 and its cost of sales as a percentage of net sales remained unchanged from the prior quarter.

I need some assistance with this problem. Thankyou.

MaggieMouse · Mar 12, 2008, 03:40 PM

Something wrong with your problem here on Q2, net sales and cost of sales are equal. In that case the cost of sales is 100%.

Need you to straighten out the numbers given first.

godschild86 · Apr 10, 2008, 04:30 PM

Quote:

Originally Posted by crhenderson07

I want to know how to develop a contribution format income statement, given only part of the needed information. The info is as follows:

Quarter1 Quarter2 Quarter3
Net sales 44116 33836

cost of sales 34429 33836

gross profit 9687 9990

Sell. gen/admin
expenses 6123 6184

operating income 3564 3806

required:

prepare a contribution format income statement for the third quarter assuming that the company's net sales were 45,500 and its cost of sales as a percentage of net sales remained unchanged from the prior quarter.

I need some assistance with this problem. Thankyou.

I am also having trouble with this problem. Are you in Reisch Acct. 2521 Online class? If you have figured it out may you guide me through?



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