**Common-Sized Income Statement**This document presents the revenue and expense data for the current calendar year for Tannenhill Company and the electronics industry averages, which are expressed in percentages. Tannenhill's data are expressed in dollars. Below are the details of the financial data:**Tannenhill Company vs. Electronics Industry Average**:- **Sales** - Tannenhill Company: $1,120,000 (100%) - Electronics Industry Average: 100%- **Cost of Merchandise Sold** - Tannenhill Company: $627,200 - Electronics Industry Average: 61% - **Gross Profit** - Tannenhill Company: $492,800 - Electronics Industry Average: 39%- **Selling Expenses** - Tannenhill Company: $302,400 - Electronics Industry Average: 23%- **Administrative Expenses** - Tannenhill Company: $123,200 - **Total Operating Expenses** - Tannenhill Company: $425,600 - Electronics Industry Average: 33%- **Income from Operations** - Tannenhill Company: $67,200 - Electronics Industry Average: 6%- **Other Revenue and Expenses** - Other Revenue: $22,400 - Other Expense: $11,200- **Income Before Income Tax Expense** - Tannenhill Company: $78,400 - Electronics Industry Average: 7%- **Income Tax Expense** - Tannenhill Company: $33,600 - Electronics Industry Average: 4%- **Net Income** - Tannenhill Company: $44,800 - Electronics Industry Average: 3%**Instructions:**- Part (a) asks to prepare a common-sized income statement comparing Tannenhill Company’s results with the industry average. If required, round the percentages to one decimal place and enter all amounts as positive numbers. The document also includes templates for calculations, including spaces to fill in Tannenhill Company percentages and verify them against industry averages. **Tannenhill Company Common-Sized Income Statement for the Year Ended December 31**- **Sales:** - Amount: $1,120,000 - Percent: _______% - Industry Average: 100.0%- **Cost of Merchandise Sold:** - Amount: $627,200 - Percent: _______% - Industry Average: 61%- **Gross Profit:** - Amount: $492,800 - Percent: _______% - Industry Average: 39%- **Selling Expenses:** - Amount: $302,400 - Percent: _______% - Industry Average: 23%- **Administrative Expenses:** - Amount: $123,200 - Percent: _______% - Industry Average: 10%- **Total Operating Expenses:** - Amount: $425,600 - Percent: _______% - Industry Average: 33%- **Income from Operations:** - Amount: $67,200 - Percent: _______% - Industry Average: 6%- **Other Revenue and Expense:** - **Other Revenue:** - Amount: $22,400 - Percent: _______% - Industry Average: 2% - **Other Expense:** - Amount: $(11,200) - Percent: _______% - Industry Average: 1%- **Income Before Income Tax:** - Amount: $78,400 - Percent: _______% - Industry Average: 7%- **Income Tax Expense:** - Amount: $33,600 - Percent: _______% - Industry Average: 4%- **Net Income:** - Amount: $44,800 - Percent: _______% - Industry Average: 3%**Instructions:**a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. If required, round percentages to one decimal place. Enter all amounts as positive numbers.b. The company is managing the cost of manufacturing product _______ than the industry and has slightly _______ selling and administrative expenses relative to the industry. The combined impact causes net income as a percent of sales to be _______ than the industry average.

Name: **Common-Sized Income Statement**This document presents the revenue a
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Description: **Common-Sized Income Statement**This document presents the revenue and expense data for the current calendar year for Tannenhill Company and the electronics industry averages, which are expressed in percentages. Tannenhill's data are expressed in d

Common size analysis means where each item of profit and loss is expressed in form of percentage and…

Business

Accounting

a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. If required, round percentages to one decimal place. Enter all amounts as positive numbers. Tannenhill Company Common-Sized Income Statement For the Year Ended December 31 Sales Cost of merchandise sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other revenue and expense: Other revenue Other expense Income before income tax Income tax expense Net income Tannenhill Tannenhill Electronics Company Company Industry Amount Percent Average $1,120,000 627,200 $492,800 $302,400. 123,200 $425,600 $67,200 22,400 (11,200) $78,400 33,600 $44,800 % % % % % % % % % % % % 100.0% 61% 39% 23% 10% 33% 6% 2% 1% 7% 4% 3% b. The company is managing the cost of manufacturing product industry, and has slightly industry. The combined impact causes net income as a percent of sales to be than the industry average. than the selling and administrative expenses relative to the

a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. If required, round percentages to one decimal place. Enter all amounts as positive numbers. Tannenhill Company Common-Sized Income Statement For the Year Ended December 31 Sales Cost of merchandise sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other revenue and expense: Other revenue Other expense Income before income tax Income tax expense Net income Tannenhill Tannenhill Electronics Company Company Industry Amount Percent Average $1,120,000 627,200 $492,800 $302,400. 123,200 $425,600 $67,200 22,400 (11,200) $78,400 33,600 $44,800 % % % % % % % % % % % % 100.0% 61% 39% 23% 10% 33% 6% 2% 1% 7% 4% 3% b. The company is managing the cost of manufacturing product industry, and has slightly industry. The combined impact causes net income as a percent of sales to be than the industry average. than the selling and administrative expenses relative to the

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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