In-Class Assignment #1: Income Statements INCOME STATEMENT % of SALES $ 80,000,000.00 SALES COGS $ 46,832,000.00 GROSS PROFIT 33,168,000.00 OPERATING EXPENSES 27,568,000.00 NET PROFIT 4 5,600,000.00 1. Please give an example of an industry that would be well-suited to a hybrid purchasing structure, along with a 2-3 sentence explanation of why. 2. $ $ $ 100% 58.5% 41.5% 34.5% 7.0% Your firm wants to increase NET PROFIT by $3m this year. If sales are consistent, by how much will you need to reduce cost of goods sold to achieve this goal? Under this scenario, what are COGS as a percentage of sales? FI 19 3. If you go the other way and try to add $3M to the bottom line by increasing sales instead, by how much would sales need to increase to achieve this goal? Remember that COGS and OPERATING EXPENSES will continue to be 58.5% and 34.5% of SALES respectively.

In-Class Assignment \#1: Income Statements 1. Please give an example of an industry that would be well-suited to a hybrid purchasing structure, along with a 2-3 sentence explanation of why. 2. Your firm wants to increase NET PROFIT by $3m this year. If sales are consistent, by how much will you need to reduce cost of goods sold to achieve this goal? Under this scenario, what are COGS as a percentage of sales? 3. If you go the other way and try to add $3M to the bottom line by increasing sales instead, by how much would sales need to increase to achieve this goal? Remember that COGS and OPERATING EXPENSES will continue to be 58.5% and 34.5% of SALES respectively