Final answer:
The provided instructions seem to describe steps for recording components of an international trade document for a current account, not for constructing a contribution format income statement. A contribution format income statement involves listing sales, deducting variable expenses to find the contribution margin, and then subtracting fixed expenses to find the net operating income.
Step-by-step explanation:
To construct a contribution format income statement, we would typically follow these steps:
- List and sum up all the sales revenue.
- Deduct variable expenses from sales to find the contribution margin.
- From the contribution margin, subtract fixed expenses to arrive at the net operating income.
In the context of the information provided, it appears there might be some confusion. The instructions seem to pertain to constructing part of an international trade section of a current account, not a contribution format income statement. If we were creating an international trade document, the steps would be as follows:
- Under the Export column, enter the dollar amount of exports of goods and services.
- Enter imports of goods and services under the Import column.
- Input the financial flows of money coming back to the U.S. (income payments) under Export, as these represent U.S. investors earning income from abroad.
- Under Import and for Income payments, document the money flowing out to foreign investors.