**Tannenhill Company Common-Sized Income Statement For the Year Ended December 31**| Category | Tannenhill Company Amount | Tannenhill Company Percent | Electronics Industry Average ||---------------------------------|---------------------------|----------------------------|------------------------------|| **Sales** | $1,309,000 | 100.0% | 100.0% || Cost of merchandise sold | 736,700 | | 59% || **Gross profit** | 653,300 | | 41% || Selling expenses | 417,400 | | 25% || Administrative expenses | 152,900 | | 10% || **Total operating expenses** | 569,900 | | 35% || **Income from operations** | 83,400 | | 6% || Other revenue and expense: | | | || Other revenue | 27,800 | | 2% || Other expense | (13,900) | | 1% || **Income before income tax** | 97,300 | | 7% || Income tax expense | 41,700 | | 5% || **Net income** | $55,600 | | 2% |This table is a common-sized income statement for Tannenhill Company, showing the financial results for the year ended December 31. It compares Tannenhill's performance against the electronics industry average. The figures include actual amounts for Tannenhill and percentage comparisons with industry norms. ### Common-Sized Income Statement#### OverviewThis report provides revenue and expense data for the current calendar year for Tannehill Company and the electronics industry. Tannehill's data is expressed in dollars, while the industry averages are presented in percentages. #### Tannehill Company vs Electronics Industry Average| **Category** | **Tannehill Company** | **Electronics Industry Average** ||-------------------------------------|-----------------------|----------------------------------|| Sales | $1,390,000 | 100% || Cost of Merchandise Sold | $736,700 | 59% || **Gross Profit** | $653,300 | 41% || Selling Expenses | $417,000 | 25% || Administrative Expenses | $152,900 | 10% || **Total Operating Expenses** | $569,900 | 35% || **Income from Operations** | $83,400 | 6% || Other Revenue | $27,800 | 2% || Other Expense | ($13,900) | 1% || **Income Before Income Tax Expense**| $97,300 | 7% || Income Tax Expense | $41,700 | 3% || **Net Income** | $55,600 | 2% |#### Notes- Tannehill Company reports sales of $1,390,000 with net income amounting to $55,600, which corresponds to 2% when compared to the industry average.- Gross profit and total operating expenses are expressed both as dollar amounts and as a percentage of total sales, with Tannehill having a gross profit of 41%.- The total operating expenses for Tannehill are recorded as $569,900, aligning with the industry's 35% average.- Income from operations is 6%, matching the industry figure.- Other revenue, other expenses, income before tax, and net income are included to provide a comprehensive look at financial performance, highlighting that Tannehill's net income percent aligns with industry norms at 2%.This common-sized income statement allows for a direct comparison of Tannehill's performance against typical industry figures, aiding in assessing operational efficiency and profitability.

Name: **Tannenhill Company Common-Sized Income Statement For the Year Ended
Uploaded: 2024-03-04T10:43:15.000Z
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Description: **Tannenhill Company Common-Sized Income Statement For the Year Ended December 31**| Category | Tannenhill Company Amount | Tannenhill Company Percent | Electronics Industry Average ||---------------------------------|--------

Solution:- Calculation of Common based income statement using below formula as follows:- =Each item…

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a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry Enter all amounts as positive numbers. Tannenhill Company Common-Sized Income Statement For the Year Ended December 31 Tannenhill Tannenhill Electronics Company Industry Percent Company Amount Average Sales $1,390,000 100.0% Cost of merchandise sold 736,700 59% Gross profit $653,300 41% Selling expenses $417,000 25% Administrative expenses 152,900 10% Total operating expenses $569,900 35% Income from operations $83,400 6% Other revenue and expense: Other revenue 27,800 2% Other expense (13,900) 16 Income before income tax $97,300 7% Income tax exxpense 41,700 5% Net income $55,600

a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry Enter all amounts as positive numbers. Tannenhill Company Common-Sized Income Statement For the Year Ended December 31 Tannenhill Tannenhill Electronics Company Industry Percent Company Amount Average Sales $1,390,000 100.0% Cost of merchandise sold 736,700 59% Gross profit $653,300 41% Selling expenses $417,000 25% Administrative expenses 152,900 10% Total operating expenses $569,900 35% Income from operations $83,400 6% Other revenue and expense: Other revenue 27,800 2% Other expense (13,900) 16 Income before income tax $97,300 7% Income tax exxpense 41,700 5% Net income $55,600

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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