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. Thank you.

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.

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?