Traditional and Contribution Format Income Statements Assignment

Chapter 1: Applying Excel 3 $12,000 5 6 7 8 9 10 11 Data Sales Variable costs: Cost of goods sold Variable selling Variable administrative Fixed costs: Fixed selling Fixed administrative $6,000 $600 $400 $2.500 $1,500 13 Enter a formula into each of the cells marked with a? below 14

Exhibit 1-7 15 16, Traditional Format Income Statement Sales 18 Cost of goods sold 19 Gross margins 20 Selling and administrative expenses: 21 Selling 22 Administrative 23 Net operating income 7 25 Contribution Format Income Statement 26 Sales 27 Variable expenses: 28 Cost of goods sold 29 Variable selling 30 Variable administration 31 Contribution margin 32 Fixed expenses: 33 Fixed selling 34 Fixed administrative 35 Net operating income 19 Download the Applying Excel form and enter formulas in all cells that contain question marks. For example, in cell C18 enter the formula “B6”. Part 1 of 2 After entering formulas in all of the cells that contained question marks, verify that the dollar amounts in both the traditional and contribution format income statements match the numbers in Exhibit 1-7. Skipped Check your worksheet by changing the variable selling cost in the Data area to $900, keeping all of the other data the same as in Exhibit 1-7. If your worksheet is operating properly, the net operating income under the traditional format income statement and under the contribution format income statement should now be $700 and the contribution margin should now be $4,700. If you do not get these answers, find the errors in your worksheet and correct them. eBook Print References Save your completed Applying Excel form to your computer and then upload it here by clicking “Browse.” Next, click “Save.” You will use this worksheet to answer the questions in Part 2. download reference file upload a response file (15MB max) Choose File No file chosen Chapter_1_Applying_Excel_Student_Form.xls to save. .

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