Accounting Course Project #2

Accounting Course - McDonough Products Inc Income Statement Compared with Industry Average Year Ended McDonough Net sales $700,000 Cost of goods

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McDonough Products, Inc. Income Statement Compared with Industry Average Year Ended December 31, 2010 McDonough Net sales. ........................................................................... $700,000 100.0% Cost of goods sold. ............................................................ 490,000 57.3 Gross profit. ....................................................................... 210,000 42.7 Operating expenses . ......................................................... 175,000 29.4 Operating income. ............................................................. 35,000 13.3 Other expenses. ................................................................ 7,000 2.5 Net income . ....................................................................... $28,000 10.8% Ratio Gross Profit net sales less cost of goods plus other income = 700000-490000=210000 30% Ratio gross profit is less the industry average Ratio operating income is better the industry average Ratio Operating Income Ratio net income is also above industry average
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This note was uploaded on 02/09/2012 for the course ACCONING 101 taught by Professor Jon during the Spring '11 term at DeVry Chicago.

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Accounting Course - McDonough Products Inc Income Statement Compared with Industry Average Year Ended McDonough Net sales $700,000 Cost of goods

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