Complete the following exercise. Fill in the Excel spreadsheet provided via the

Question

Complete the following exercise. Fill in the Excel spreadsheet provided via the link at the bottom of the page to provide your answers to parts a and b. Then paste the Excel data into a Word document on which you can also write the answer to part c.

Administrative Expenses

$ 70,000

Finished Goods Inventory January 1, 20X3

$120,000

Cost of Goods Manufactured during the year

$200,000

Finished Goods Inventory December 31, 20X3

$ 60,000

Selling Expenses

$ 40,000

Sales

$680,000

Required:

Using the information for Superior Manufacturing Company, prepare the income statement for the year ended December 31, 20X3. (Assume a 30% income tax.)

Provide at least three performance ratios regarding Superior Manufacturing Company, and comment on the company's performance.

Create a report between 200 and 300 words in length for leadership. The topic is the state of this company. Where do you see a problem regarding the company? Make some suggestions if there are areas you feel need to be further investigated.

Administrative Expenses

$ 70,000

Finished Goods Inventory January 1, 20X3

$120,000

Cost of Goods Manufactured during the year

$200,000

Finished Goods Inventory December 31, 20X3

$ 60,000

Selling Expenses

$ 40,000

Sales

$680,000

Explanation / Answer

B.Performance ratios:

=260000/(120000+60000/2)

=260000/90000=2.88times

2. Profit margin ratio=net income /net sales

=217000/680000

=0.32 times

3.Gross profit ratio=gross profit/sales

= 420000/680000

=0.61 times

Comments on performance:

3.Report:

The manufacturing company is good in its performance but few costs are to be reduced like inventory heavy holding in quantity or by increasing its manufacturing quantity it can overcome its low profit margin share of the company.

A.Superior Manufacturing company Income Statement as on december31,20X3 Particulars Amount($) Amount($) Sales 680000 Cost of goods sold finished goods inventory jan 1,20X3 120000 Cost of goods manufactured 200000 Total goods available for sale 320000 Finished goods inventory dec 31,20X3 -60000 Less:Cost of goods sold 260000 Gross profit 420000 Less: Selling expenses 40000 Administrative expenses 70000 Total expenses 110000 Income from operations before taxes 310000 Income tax@30% 93000 Net income 217000

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