Common-Sized Income StatementRevenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill's data are expressed indollars. The electronics industry averages are expressed in percentages.ElectronicsTannenhillIndustryCompanyAverageSales$2,580,000100 %Cost of merchandise sold1,728,60071Gross profit$851,40029 %Selling expenses$490,20016 %Administrative expenses206,4007Total operating expenses$696,60023 %Income from operations$154,8006 %Other revenue and expense:Other revenue51,600Other expense(25,800)Income before income tax expense$180,6007 %Income tax expense77,4004Net income$103,2003 % a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. If required, roundpercentages to one decimal place. Enter all amounts as positive numbers.Tannenhill CompanyCommon-Sized Income StatementFor the Year Ended December 31Tannenhill Tannenhill ElectronicsCompanyCompanyIndustryAmountPercentAverageSales$2,580,000%100.0%Cost of merchandise sold1,728,600%71%Gross profit$851,400%29%Selling expenses$490,200%16%Administrative expenses206,400%7%Total operating expenses$696,600%23%Income from operations$154,800%6%Other revenue and expense:Other revenue51,600%2%Other expense(25,800)%1%Income before income tax$180,600%7%Income tax expense77,400%4%Net income$103,200%3%

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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 expresse dollars. The electronics industry averages are expressed in percentages. Electronics Tannenhill Industry Company Average Sales $2,580,000 100 % Cost of merchandise sold 1,728,600 71 Gross profit $851,400 29 % Selling expenses $490,200 16 % Administrative expenses 206,400 Total operating expenses $696,600 23 % Income from operations $154,800 6 % Other revenue and expense: Other revenue 51,600 Other expense (25,800) 1 Income before income tax expense $180,600 7 % Income tax expense 77,400 4 Net income $103,200 3 %

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 expresse dollars. The electronics industry averages are expressed in percentages. Electronics Tannenhill Industry Company Average Sales $2,580,000 100 % Cost of merchandise sold 1,728,600 71 Gross profit $851,400 29 % Selling expenses $490,200 16 % Administrative expenses 206,400 Total operating expenses $696,600 23 % Income from operations $154,800 6 % Other revenue and expense: Other revenue 51,600 Other expense (25,800) 1 Income before income tax expense $180,600 7 % Income tax expense 77,400 4 Net income $103,200 3 %

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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