[godschild86]

I was wondering if I may get some assistants on the following problem,

Blue Nile Income Statement for 2005

Quarter 1 Quarter 2 Quarter 3
Net Sales $ 44,116 $43,826 ?
C.O.S 34,429 33,836 ?
Gross Profit 9,687 9,990 ?
Selling, general,
and administrative
expense 6,123 6,184 ?
Operating Income 3,564 3,806 ?

Then it states that for Q3 Net Sales would be 45,500 and C.O.S would not be unchanged from the prior quarter.

So far I have for Quarter 3:
Net Sales = $45,500
C.O.S = $33,836
Gross Profit = $11,664

May you explain to me how to get the expense and the income and format it into a income statement?

Thank You

[morgaine300]

It's basically already in an income statement format:

Sales
-COGS
Gross Profit
-SG&A
Operating Income

How you get the rest of the expenses I have no idea. The other person who posted this question called it a "contribution" style income statement. I'm not sure what that is supposed to mean. Since this is from a class, books can call things by all kinds of different names, and I've even seen authors just make stuff up and call it whatevery they want. Can you give a context of this question, like a chapter name, or something that might point to what it is they're trying to get you to do here?

(To me, the word contribution is reminding me of contribution margin. There is a way to do a statement utilizing the contribution margin, except... it's usually called variable, and I'm not sure how you're supposed to use this information to do such a thing as that. So I think that's far-fetched for me to be thinking along those lines.)