Case scenario-the plane ride to profit

Question

Assignment: The Plane Ride to Profit

You are the President of Union Molding, on an airplane to meet with a potential investor. You have just opened your briefcase expecting to find the latest income statement, but in its place is the sales and expense data. Because your office is on the East Coast and you are going to the West Coast, it will be too late to call your office when you arrive. You need to create an income statement from the following data before the plane lands.  Values or account names need to be inserted into the shaded boxes below.

Units sold                           10,000    Selling Expenses                     $167,000
Beginning Inventory        $200,000    Ending Inventory                     $250,000
Unit Price                           $62.50    Office Supplies                            $5,000
Utility Expense                    $7,000    Insurance Expense                    $10,000
Income Taxes                   $28,000    Employee Health Insurance          $6,000
Purchases                       $300,000    Interest Expense                        $40,000
Shares Outstanding               5,000   

Union Molding
Income Statement

Sales			$
Beginning Inventory	$200,000
Purchases	$	$500,000
		$
			$250,000
Gross Margin			$
Selling Expenses		$
	$
	$
Insurance Expense	$
	$	$  28,000
			$195,000
Operating Profit			$
			$
Profit Before Tax			$
			$
			$112,000
Gross Margin Ratio			%
Cost of Goods Sold Ratio			%
Operating Profit Margin			%
Earnings Per Share			$