Chapter 1 Applying Excel (A)i Help Save Exit Saved 1 Required information The Chapter 1 Form worksheet to be used to create your own worksheet version of Exhibit 1-7 in the text. Part 1 of 2 Download the Applying Excel form and enter formulas in all cells that contain question marks. For example, in cell C18 enter the formula = B6" Skipped After entering formulas in all of the cells that contained question marks, verify that the dollar amounts in both the traditional and contribution format income statements match the numbers in Exhibit 1-7, eBook Print the Data area to $900, keeping al Check your worksheet by changing the variable selling cost the net operating income under the traditional format income statement and under the contribution format income statement should now be $700 and the contribution margin should now be $4,700. If you do not get these answers, find the errors f the other data the same as in Exhibit 1-7. If your worksheet is operating properly, References your worksheet and correct them. answer the Save your completed Applying Excel form to your computer and then upload it here by clicking "Browse." Next, click "Save." You will use this worksheet questlons in Part 2, Traditional Format Contribution Format $12,000 Sales $12,000 Sales Cost of goods sold 6,000 Variable expenses: Gross margin $6,000 6,000 Cost of goods sold Selling and administrative expenses: Variable selling 600 $3,100 7,000 Selling Variable administrative. 400 5,000 Contribution margin Administrative 1,900 5,000 1,000 Fixed expenses: Net operating income Fixed selling 2,500 4,000 Fixed administrative 1,500 1,000 Net operating income For a manufacturing company, the cost of goods sold would include some variable costs, such as direct materials, direct labor, and variable overhead, and some fixed costs, such as fixed manufacturing overhead. Income statement formats for manufacturing companies will be explored in greater detail in a subsequent chapter. Beginning Ending Cost of merchandise +Purchases merchandise goods sold inventory inventory Ending Beginning Cost of goods merchandise Purchases merchandise sold inventory inventory $3,000 $4,000 $7,000 $6,000 3 Data $12,000 4 Sales 5 Variable costs: $6,000 $600 Cost of goods sold Variable selling 6 7 $400 8 Variable administrative Fixed costs: Fixed selling $2,500 $1,500 10 11 Fixed administrative 12 13 Enter a formula into each of the cells marked with a ? below 14 Exhibit 1-7 15 16 Traditional Format Income Statement 17 Sales 18 Cost of goods sold 19 Gross margin 20 Selling and administrative expenses: ? ? Selling 21 ? 22 Administrative ? ? 23 Net operating income ? 24 25 Contribution Format Income Statement 26 Sales ? 27 Variable expenses: 28 Cost of goods sold Variable selling ? 29 ? Variable administration 30 ? ? 31 Contribution margin 32 Fixed expenses: ? Fixed selling ? 33 34 ? ? Fixed administrative 35 Net operating income