Preparing multistep income statement and calculating profit

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Reference no: EM13597772

Preparing multistep income statement and calculating profit percentage.Assume that you have been hired by Big Sky corporation as a summer intern . The company is in the process of preparing their annual financial statement. To help this process , you are asked to prepare an income statement for internal reporting purposes and an income statement for external reporting purposes. Your boss has also requested that you determine the company's gross profit percentage based on statement that you are to prepare. The following adjusted trial balance was created from the general ledger accounts on May 31,2010.

Accounts titel Debit credit
cash 57000
account receivable 67000
inventory 103000
property and equipment 252000
Accumulated depreciation 103000
liabilities 75000
Owner's equity,june 1,2009 265900
sales revenue 369000
sales returns and allowances 9500
sales discounts 14000
cost of goods sold 248000
selling expenses 19000
Administrative expense 23000
General expenses 5000
income tax expense 15400
Totals $812900 $812900

your boss wants you to create the spreadsheet in a way that automatically recalculates net sales and any other related amounts whenever changes are made to the contra-revenue accounts. To do this, you know that you will have to use formulas throughout the worksheets and even import or link cells from one worksheet to another.

Reference no: EM13597772

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