Complete the Gross Margin Ratio as listed in the instructions and Use the Balance Sheet belowas a guide for proper formatting.
#1
Using the following revenues and expenses, create an
income statement in proper format.
Calculate the Gross
Profit (Margin) Ratio.
Loss on Sale of Assets
Gain on Sale of Assets
Income Tax Expense
Interest Income
Interest Expense
COGS
Net Sales
$
$
$
$
$
$
$
7,000
60,000
25,000
45,000
85,000
4,500,000
7,000,000
Selling, General, &
Admin Expenses
$
1,700,000
#2
Using the following revenues and expenses, create an income statement in proper format.
Calculate the Gross Profit (Margin)
Ratio.
COGS
Loss on Sale of Assets
Income Tax Expense
Interest Expense
Interest Income
Gain on Sale of Assets
Net Sales
General & Admin Expense
Wages Expense
Utilities & Insurance Expense
Depreciation Expense
Lease & Rent Expense
Supplies & Materials Expense
Dues & Subscriptions Expense
$
$
$
$
$
$
$
$
$
$
$
$
$
$
2,100,000
15,000
105,000
55,000
10,000
30,000
3,500,000
285,000
455,000
110,000
95,000
40,000
55,000
15,000
Here is the Balance Sheet that you will use AS A GUIDE FOR FORMATTING:
ABC Company
Balance Sheet
As of Dec. 31, 2022 and 2021
ASSETS
Short-Term (Current) Assets:
Cash & Cash Equivalents
Accounts Receivable
Inventory
Prepaid Assets
Short-term Investments
Total Current Assets
Property, Plant, & Equipment (LT):
Land
Buildings
Equipment & Autos
2022
$
2021
75,000
25,000
110,000
90,000
$
78,000
20,000
125,000
79,000
50,000
54,000
350,000
356,000
100,000
200,000
50,000
80,000
110,000
85,000
Less Accumulated Depreciation
Net Property, Plant &
Equip.
(75,000)
(55,000)
275,000
220,000
Intangible Assets (LT):
Goodwill
Copyrights
Trademarks
Patents
200,000
50,000
35,000
15,000
200,000
50,000
35,000
15,000
(300,000)
(300,000)
Less Accumulated Amortization
Net Intangible
Assets
Natural Resources (LT):
Timber
Coal
Less Accumulated Depletion
Net Natural
Resources
–
–
150,000
75,000
150,000
75,000
(225,000)
(225,000)
–
–
Total Assets
$
625,000
$
576,000
LIABILITIES
Short-Term (Current) Liabilities:
Accounts Payable
Wages Payable
Interest Payable
50,000
35,000
5,000
65,000
30,500
2,500
Short-term Note Payable
65,000
73,000
155,000
171,000
75,000
50,000
Total Current Liabilities
Long-Term (Non-Current) Liabilities:
Long-Term Note Payable
Long-Term Bonds Payable
Total Long-Term
Liabilities
45,000
60,000
120,000
110,000
Total Liabilities
275,000
281,000
265,000
210,000
50,000
15,000
25,000
50,000
15,000
25,000
(5,000)
(5,000)
350,000
295,000
OWNERS’ EQUITY
Retained Earnings
Paid-In Capital:
Common Stock $1 par, 500,000 shs
authorized,
50,000 shs issued, 45,000 shs
outstanding
Preferred Stock
Additional Paid-in Capital
Treasury Stock 5,000 shs
Total Owners’ Equity
Total Liabilities &
Owners’ Equity
$
625,000
$
576,000
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