a. Prepare a common-sized income statement comparing the results of operations for Dawg Electronics Company with the industry average. If required, round percentages to one decimal place. Dawg Electronics Company Common-Sized Income Statement Dawg Electronics Dawg Electronics Electronics Industry Company Amount Company Percent Average Sales $3,750,000 100.0 % 100.0% Cost of goods sold (2,062,500) 550.0 % (61.0)% Gross profit $1,687,500 45.0 % 39.0% Selling expenses $(1,125,000) 0.3 % (23.0)% Administrative expenses (262,500) 0.7 % (10.0)% Total operating expenses $(1,387,500) 37.0 % (33.0)% Operating income $300,000 8.0 % 6.0% Other revenue and expense: Other revenue 15,000 0.4 % 3.0% Other expense (3,750) 0.1 % (1.0)% Income before income tax $311,250 8.3 % 8.0% Income tax expense (93,750) 25 % (2.5)% Net income $217,500 5.8 % 5.5%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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a. Prepare a common-sized income statement comparing the results of operations for Dawg Electronics Company with the industry average. If required, round percentages to
one decimal place.
Dawg Electronics Company
Common-Sized Income Statement
Dawg Electronics Dawg Electronics
Electronics Industry
Company Amount Company Percent
Average
Sales
$3,750,000
100.0 %
100.0%
Cost of goods sold
(2,062,500)
550.0 %
(61.0)%
Gross profit
$1,687,500
45.0 %
39.0%
Selling expenses
$(1,125,000)
0.3 %
(23.0)%
Administrative expenses
(262,500)
0.7 %
(10.0)%
Total operating expenses
$(1,387,500)
37.0 %
(33.0)%
Operating income
$300,000
8.0 %
6.0%
Other revenue and expense:
Other revenue
15,000
0.4 %
3.0%
Other expense
(3,750)
0.1 %
(1.0)%
Income before income tax
$311,250
8.3 %
8.0%
Income tax expense
(93,750)
25 %
(2.5)%
Net income
$217,500
5.8 %
5.5%
Transcribed Image Text:a. Prepare a common-sized income statement comparing the results of operations for Dawg Electronics Company with the industry average. If required, round percentages to one decimal place. Dawg Electronics Company Common-Sized Income Statement Dawg Electronics Dawg Electronics Electronics Industry Company Amount Company Percent Average Sales $3,750,000 100.0 % 100.0% Cost of goods sold (2,062,500) 550.0 % (61.0)% Gross profit $1,687,500 45.0 % 39.0% Selling expenses $(1,125,000) 0.3 % (23.0)% Administrative expenses (262,500) 0.7 % (10.0)% Total operating expenses $(1,387,500) 37.0 % (33.0)% Operating income $300,000 8.0 % 6.0% Other revenue and expense: Other revenue 15,000 0.4 % 3.0% Other expense (3,750) 0.1 % (1.0)% Income before income tax $311,250 8.3 % 8.0% Income tax expense (93,750) 25 % (2.5)% Net income $217,500 5.8 % 5.5%
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