In this activity, you will work with two different formats of the Income Statement. The first will be familiar to you, as it is the format that you have seen in reviewing the annual reports of a company.

In this activity, you will work with two different formats of the Income Statement. The first will be familiar to you, as it is the format that you have seen in reviewing the annual reports of a company. This type of Income Statement is prepared using the Generally Accepted Accounting Principles (GAAP) that are required for external reporting. The costing system used to prepare the cost data for this statement is called absorption costing because it includes all product costs in the computation of Cost of Goods Sold (COGS). The second format of this statement you will learn about is called the Contribution Margin Income Statement. This financial statement is prepared for internal decision-making only and may not be used for external reporting. Instead of using all product costs to compute COGS, only variable costs are used. There is no Gross Profit found on this income statement. Instead, we see Contribution Margin. Before you begin this assignment, be sure to review the following resources: https://youtu.be/iDg9s7BJ2m4 https://youtu.be/8s857X0oCX4 Instructions This graded assignment reinforces the learning objectives and is also designed to aid you in creating Microsoft Excel formulas. Please plan for approximately 30 minutes to complete this activity. Follow the instructions below to complete this assignment: Download the U1 Learn Excel Accounting Appications template Download U1 Learn Excel Accounting Appications templateworksheet for this activity. Populate the worksheet as indicated in the instructions on the worksheet.