1. Prepare an income statement using the following information: Gross profit m

1. Prepare an income statement using the following information:

; Gross profit margin ; 42%

; Cost of goods sold ; $5,800

; Tax rate ; 30%

; Operating profit ; $600

2. ; The following information is available for Brown Theater Company. ; Analyze the gross profit margin making any calculations deemed necessary.

; 2012 ; 2011 ; 2010

; Movie ticket sales ; ; $ ; 500 ; ; ;$ ; 450 ; $420

; Concession sales ; ; 800 ; ; 600 ; ; 500

; Total sales ; ; $1,300 ; ; ; ;$1,050 ; $920

; Movie rental expense ; ; ; ;480 ; ; 400 ; ; 380

; Cost of concession products ; ; 350 ; ; 300 ; ; 280

; Gross profit ; ; ; $ ; 470 ; ; ;$ ; 350 ; ; ; $260

3. ; Use the following information to analyze the PQ Company. ; Calculate any profit measures deemed necessary in order to discuss the profitability of the company.

PQ Company Income Statements

; For the Years Ended Dec. 31, 2012 and 2011

; ; 2012 ; ; 2011

; Net sales ; $174,000 ; $167,000

; COGS ; ; ; 114,000 ; ; 115,000

; Gross profit ; $ ; 60,000 ; $ ; 52,000

; General and administrative expenses ; ; ; 54,000 ; ; 46,000

; Operating profit ; $ ; 6,000 ; $ ; 6,000

; Interest expense ; ; (1,000) ; ; (1,000)

; Earnings before taxes ; ; $ ; 5,000 ; $ ; 5,000

; Income taxes ; ; ; 2,000 ; ; 2,000

; Net income ; $ ; 3,000 ; $ ; 3,000