First Quarter, Jan 1-March 31
REVENUES:
Sales Revenue
Other Revenue
TOTAL REVENUES
Cost of Goods Sold
GROSS PROFIT
EXPENSES:
Rent
Insurance
Salaries and wages
Utilities
TOTAL EXPENSES
NE INCOME
$89,000
$0
$89,000
$64,000
$25,000
$7,500
$2,000
$9,000
$4,500
$23,000
$2,000
a. What method should Rosa use in this analysis? (2 points) b. Use this method to
conduct an analysis to determine which percentage of net sales the company is
spending on cost of goods sold. (5 points)
c. How can Readers' Publishing use this information to plan for its financial future
and make wise decisions in the future? (5 points)