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.
For the Last Year
Cost of goods sold
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.