Applying excel

The Chapter 1 Form worksheet is to be used to create your own worksheet version of Exhibit 1-7 in the text. Download the Applying Excel form and enter formulas in all cells that contain question marks. of 2 For example, in cell C18 enter the formula "=B6". 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. ok nt 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. ences 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. upload a response file (15MB max) download reference file Choose File No file chosen Chapter_1_Applying_Excel Student Form.xls save EXHIBIT 17 Comparing Traditional and Contribution Format Income Statements for Merchandising Companies (all numbers are given) $12,000 Traditional Format Sales Cost of goods sold Gross margin Selling and administrative expenses Selling Administrative Net operating income Contribution Format $12,000 Sales 6,000 Variable expenses 6,000 Cost of goods sold Variable selling Variable administrative. 5,000 Contribution margin $ 1,000 Fixed expenses Fixed selling Fixed administrative Net operating income $6,000 600 400 $3,100 1.900 7,000 5,000 2,500 1,500- 4,000 $ 1,000 For a manufacturing company, the cost of goods sold would include some variable costs, such as direct materials, direct labor, and variable overhead, and some fixed costs, such as fixed manufacturing overhead. Income statement formats for manufacturing companies will be explored in greater detail in a subsequent chapter. Beginning Ending Cost of = merchandise + Purchases - merchandise goods sold inventory inventory Cost of goods sold Beginning Ending = merchandise + Purchases - merchandise inventory inventory $7,000 + $3,000 $4,000 $6,000 $12,000 4 Sales 5 Variable costs. 6 Cost of goods sold 7 Variable selling 8 Variable administrative 9 Fixed costs 10 Fixed selling 11 Fixed administrative $6,000 $600 $400 $2,500 $1,500 12 2 2 2 2 ? 13 Enter a formula into each of the cells marked with a 2 below 14 Exhibit 1-7 15 16 Traditional Format Income Statement 17 Sales 18 Cost of goods sold 19 Gross margin 20 Selling and administrative expenses. 21 Selling ? 22 Administrative ? 23 Net operating income 24 25 Contribution Format Income Statement 26 Sales 27 Variable expenses. 28 Cost of goods sold 2 29 Variable selling ? 30 Variable administration ? 31 Contribution margin 32 Fixed expenses. 33 Fixed selling ? 34 Fixed administrative 2 35 Net operating income 36 P ? ? 2 2 27 1. Now change all of the dollar amounts in the data area of your worksheet so that it looks like this: Part 2 of 2 A B 1 Chapter 1: Applying Excel 2 10 points 3 Data 4 Sales $ 57.000 5 Variable costs eBook Jaun 6 $ 7 Print Cost of goods sold Variable selling Variable administrative $ 36,000 3,600 3,400 8 $ References 9 Fixed costs Fixed selling 10 $ 2,500 11 Fixed administrative $ 1,500 If your formulas are correct, you should get the correct answers to the following questions. (a) What is the gross margin now? Gross margin Pan 2012 (b) What is the net operating income now? 10 points Net operating income. eBook Print References (c) What is the contribution margin now? Contribution margin 2. Suppose that sales are 21% higher as shown below: B 1 Chapter 1: Applying Excel 2. Suppose that sales are 21% higher as shown below: Part 2 of 2 A B 1 Chapter 1: Applying Excel 2 oints 3 Data 4 Sales $ 68 970 eBook 5 Variable costs 6 Print $ 43,560 7 $ 4.356 References 8 $ 4.114 6000 Cost of goods sold Variable selling Variable administrative Fixed costs Fixed selling Fixed administrative 9 10 $ 2.500 11 S 1,500 Enter this new data into your worksheet. Make sure you enter all of the new data - not just the sales. (a) What is the gross margin now? Gross margin co Required information (b) What is the net operating income now? Part 2 of 2 Net operating income 10 points eBook Print (c) What is the contribution margin now? References Contribution margin (d) When sales increase by 21%, which of the following should also increase by 21% in a merchandising company? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) ? Variable cost 2 Required information ? Variable cost Part 2 of 2 ? Fixed cost ? Gross margin 10 points ? Contribution margin eBook ? Net operating income Print References (e) When sales increase by 21%, which of the following should increase by more than 21% in a merchandising company? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) ? Variable cost ? Fixed cost ? Gross margin ? Contribution margin ? Net operating income