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. Tannenhill Company Electronics Industry Average Sales $2,740,000 100 % Cost of goods sold 1,753,600 69 Gross profit $986,400 31 % Selling expenses $602,800 18 % Administrative expenses 219,200 7 Total operating expenses $822,000 25 % Operating income $164,400 6 % Other revenue 54,800 2 $219,200 8 % Other expense 27,400 1 Income before income tax $191,800 7 % Income tax expense 82,200 5 Net income $109,600 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. Enter all amounts as positive numbers. Tannenhill Company Common-Sized Income Statement For the Year Ended December 31 Tannenhill Company Amount Tannenhill Company Percent Electronics Industry Average Sales $2,740,000 fill in the blank 99c09f0ccfb4ff4_1% 100.0% Cost of goods sold 1,753,600 fill in the blank 99c09f0ccfb4ff4_2% 69% Gross profit $986,400 fill in the blank 99c09f0ccfb4ff4_3% 31% Selling expenses $602,800 fill in the blank 99c09f0ccfb4ff4_4% 18% Administrative expenses 219,200 fill in the blank 99c09f0ccfb4ff4_5% 7% Total operating expenses $822,000 fill in the blank 99c09f0ccfb4ff4_6% 25% Income from operations $164,400 fill in the blank 99c09f0ccfb4ff4_7% 6% Other revenue 54,800 fill in the blank 99c09f0ccfb4ff4_8% 2% $219,200 fill in the blank 99c09f0ccfb4ff4_9% 8% Other expense 27,400 fill in the blank 99c09f0ccfb4ff4_10% 1% Income before income tax $191,800 fill in the blank 99c09f0ccfb4ff4_11% 7% Income tax expense 82,200 fill in the blank 99c09f0ccfb4ff4_12% 5% Net income $109,600 fill in the blank 99c09f0ccfb4ff4_13% 2% 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.

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. Tannenhill Company Electronics Industry Average Sales $2,740,000 100 % Cost of goods sold 1,753,600 69 Gross profit $986,400 31 % Selling expenses $602,800 18 % Administrative expenses 219,200 7 Total operating expenses $822,000 25 % Operating income $164,400 6 % Other revenue 54,800 2 $219,200 8 % Other expense 27,400 1 Income before income tax $191,800 7 % Income tax expense 82,200 5 Net income $109,600 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. Enter all amounts as positive numbers. Tannenhill Company Common-Sized Income Statement For the Year Ended December 31 Tannenhill Company Amount Tannenhill Company Percent Electronics Industry Average Sales $2,740,000 fill in the blank 99c09f0ccfb4ff4_1% 100.0% Cost of goods sold 1,753,600 fill in the blank 99c09f0ccfb4ff4_2% 69% Gross profit $986,400 fill in the blank 99c09f0ccfb4ff4_3% 31% Selling expenses $602,800 fill in the blank 99c09f0ccfb4ff4_4% 18% Administrative expenses 219,200 fill in the blank 99c09f0ccfb4ff4_5% 7% Total operating expenses $822,000 fill in the blank 99c09f0ccfb4ff4_6% 25% Income from operations $164,400 fill in the blank 99c09f0ccfb4ff4_7% 6% Other revenue 54,800 fill in the blank 99c09f0ccfb4ff4_8% 2% $219,200 fill in the blank 99c09f0ccfb4ff4_9% 8% Other expense 27,400 fill in the blank 99c09f0ccfb4ff4_10% 1% Income before income tax $191,800 fill in the blank 99c09f0ccfb4ff4_11% 7% Income tax expense 82,200 fill in the blank 99c09f0ccfb4ff4_12% 5% Net income $109,600 fill in the blank 99c09f0ccfb4ff4_13% 2% 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

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.

	Tannenhill Company	Electronics Industry Average
Sales	$2,740,000		100	%
Cost of goods sold	1,753,600		69
Gross profit	$986,400		31	%
Selling expenses	$602,800		18	%
Administrative expenses	219,200		7
Total operating expenses	$822,000		25	%
Operating income	$164,400		6	%
Other revenue	54,800		2
	$219,200		8	%
Other expense	27,400		1
Income before income tax	$191,800		7	%
Income tax expense	82,200		5
Net income	$109,600		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. Enter all amounts as positive numbers.

Tannenhill Company
Common-Sized Income Statement
For the Year Ended December 31
	Tannenhill Company Amount	Tannenhill Company Percent	Electronics Industry Average
Sales	$2,740,000	fill in the blank 99c09f0ccfb4ff4_1%	100.0%
Cost of goods sold	1,753,600	fill in the blank 99c09f0ccfb4ff4_2%	69%
Gross profit	$986,400	fill in the blank 99c09f0ccfb4ff4_3%	31%
Selling expenses	$602,800	fill in the blank 99c09f0ccfb4ff4_4%	18%
Administrative expenses	219,200	fill in the blank 99c09f0ccfb4ff4_5%	7%
Total operating expenses	$822,000	fill in the blank 99c09f0ccfb4ff4_6%	25%
Income from operations	$164,400	fill in the blank 99c09f0ccfb4ff4_7%	6%
Other revenue	54,800	fill in the blank 99c09f0ccfb4ff4_8%	2%
	$219,200	fill in the blank 99c09f0ccfb4ff4_9%	8%
Other expense	27,400	fill in the blank 99c09f0ccfb4ff4_10%	1%
Income before income tax	$191,800	fill in the blank 99c09f0ccfb4ff4_11%	7%
Income tax expense	82,200	fill in the blank 99c09f0ccfb4ff4_12%	5%
Net income	$109,600	fill in the blank 99c09f0ccfb4ff4_13%	2%

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.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.