Income Statement Essay Example | Topics and Well Written Essays - 250 words

Income Statement - Essay Example The cost of goods sold is directly related to the manufacturing of products by the company; hence, it must incur overapplied or underapplied overhead costs in the calculation of cost of goods sold. The company has earned a viable net income after deducting all the expenses. The financial position of the manufacturing company seems to be sound in 2011. The revenues for the year are summed up at $680,000 and gross profit is accumulated at $420,000. The company can increase its income for the year by lessening the sales expenses and the operating and administrative expenses. The administrative expenses of the company are totaled at $70,000 and the sales expenses are accumulated at $40,000. Superior Manufacturing Company can reduce its administrative expenses by investing more in technology, outsourcing business processing and technological advancements, automate the functions of customer service by using online systems, etc. This will help the company to increase its net income. Summing up, the company has a stable financial position and can improve more in the coming years by cutting down its