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Use the 2012 income statement and balance sheet below to complete a Strategic Profit Model for Jones Company.

 

Income Statement 2012

Jones Company

Sales

 

$200,000

     Cost of Goods Sold

 

$130,000

Gross Margin

 

$  70,000

     Transportation Cost

$6,000

 

     Warehousing Cost

$3,000

 

      Inventory Carrying Cost

$1,000

 

     Other Operating Costs

$30,000

 

     Total Operating Costs

$40,000

 

Earnings before interest and taxes

 

 $30,000    

     Interest

 

$11,000

     Taxes

 

$6,000

Net Income

 

$13,000

 

Balance Sheet 2012

 

 

Assets

 

 

    Cash

 

$20,000

    Accounts Receivable

 

$35,000

     Inventory

 

$15,000

    Total Current Assets

 

$70,000

    Net Fixed Assets

 

$80,000

    Total Assets

 

$150,000

Liabilities

 

 

    Current Liabilities

 

$60,000

    Long-Term Debt

 

$30,000

    Total Liabilities

 

$90,000

Shareholder's Equity

 

$60,000

Total Liabilities and Equity

 

$150,000

 

 

Management Theories, Management Studies

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