Morrisey & Brown, Ltd.
Morrisey & Brown, Ltd.
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| Morrisey & Brown, Ltd., of Sydney is a merchandising company that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company’s income statements for the three most recent months follow: |
| Morrisey & Brown, Ltd. Income Statements For the Three Months Ended September 30 |
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| July | August | September | |||||||||||||||
| Sales in units | 4,000 | 4,500 | 5,000 | ||||||||||||||
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| Sales | $400,000 | $450,000 | $500,000 | ||||||||||||||
| Cost of goods sold | 240,000 | 270,000 | 300,000 | ||||||||||||||
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| Gross margin | 160,000 | 180,000 | 200,000 | ||||||||||||||
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| Selling and administrative expenses: | |||||||||||||||||
| Advertising expense | 21,000 | 21,000 | 21,000 | ||||||||||||||
| Shipping expense | 34,000 | 36,000 | 38,000 | ||||||||||||||
| Salaries and commissions | 78,000 | 84,000 | 90,000 | ||||||||||||||
| Insurance expense | 6,000 | 6,000 | 6,000 | ||||||||||||||
| Depreciation expense | 15,000 | 15,000 | 15,000 | ||||||||||||||
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| Total selling and administrative expenses | 154,000 | 162,000 | 170,000 | ||||||||||||||
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| Net operating income | $ 6,000 | $ 18,000 | $ 30,000 | ||||||||||||||
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