Adams Company reported the following operating results for two consecutive years: Required Compute each income statement component for each of the two years as a percent of sales. Note: Percentages may not add exactly due to rounding. Round your answers to 1 decimal place. (i.e., .234 should be entered as 23.4). Sales Cost of goods sold Gross margin on sales Operating expenses Income before taxes Income taxes Net income ADAMS COMPANY Vertical Analysis of Income Statements Year 4 Percentage of Sales for Year 4 100.0 % $ $ X Answer is not complete. 999,500 549,725 449,775 129,400 320,375 81,000 239,375 % Year 3 $ 1,081,500 598,400 483,100 152,000 331,100 80,400 250,700 $ Percentage of Sales for Year 3 100.0 % %

Adams Company reported the following operating results for two consecutive years: Required Compute each income statement component for each of the two years as a percent of sales. Note: Percentages may not add exactly due to rounding. Round your answers to 1 decimal place. (i.e., .234 should be entered as 23.4). Sales Cost of goods sold Gross margin on sales Operating expenses Income before taxes Income taxes Net income ADAMS COMPANY Vertical Analysis of Income Statements Year 4 Percentage of Sales for Year 4 100.0 % $ $ X Answer is not complete. 999,500 549,725 449,775 129,400 320,375 81,000 239,375 % Year 3 $ 1,081,500 598,400 483,100 152,000 331,100 80,400 250,700 $ Percentage of Sales for Year 3 100.0 % %

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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Common-Sized Income Statement Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill's data are expressed in dollars. The electronics industry averages are expressed in percentages. Electronics Tannenhill Industry Company Average $1,390,000 100 % Sales 736,700 59 Cost of merchandise sold $653,300 41 % Gross profit $417,000 25 % Selling expenses 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 expense $97,300 7 % Income tax expense 41,700 Net income $55,600 2 % 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. econ.docx Show all Type here to search 6:05 AM 59 F 局 10/30/2021 12 prt sc 00 5.
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