Mowen 8eEX 02-50

Exercise 2-50 Name: Enter the appropriate amount in the gray-shaded cells. A red asterisk (*) will appear in the column to the right of an incorrect amount. Round percentages to the nearest tenth of a percent. 1. Jasper Company Income Statement For the Last Year Sales & Percent Expenses of Sales Sales revenue $ 3,360,000 100.0% Cost of goods sold 795,000 23.7% Gross profit $ 2,565,000 76.3% Less: Selling expense 437,000 13.0% Administrative expense 854,000 25.4% Operating income $ 1,274,000 37.9% 2. Enter your essay answer in the space below. Essay answers will not be graded. A manager could use this income statement to better control costs because the percentage column clearly shows how much profit was lost due to costs and expenses, which the manager can then use to compare to previous fiscal periods and make sure that the costs and expenses are not increasing. It also helps the manager better see the impact any changes during the period might have made and whether those changes helped raise profit or not.
Uploaded by DeaconEel3715 on