Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. The Tannenhill’s data are expressed in dollars. The electronics industry averages are expressed in percentages. 1 Tannenhill Company Electronics Industry Average 2 Sales $4,060,000.00 100.0% 3 Cost of goods sold 2,111,200.00 58.0 4 Gross profit $1,948,800.00 42.0% 5 Selling expenses $1,055,600.00 23.0% 6 Administrative expenses 649,600.00 14.0 7 Total operating expenses $1,705,200.00 37.0% 8 Operating income $243,600.00 5.0% 9 Other income 118,000.00 2.9 10 $361,600.00 7.9% 11 Other expense 72,000.00 1.8 12 Income before income tax $289,600.00 6.1% 13 Income tax expense 78,000.00 1.9 14 Net income $211,600.00 4.2% A. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. Round percentages to one decimal place. Enter all amounts as positive numbers. B. As far as the data permit, comment on significant relationships revealed by the comparisons. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. Round percentages to one decimal place. Enter all amounts as positive numbers. Tannenhill Company Common-Sized Income Statement For the Year Ended December 31 1 Tannenhill Company Tannenhill Company Electronics Industry Average 2 Amount Percent 3 Sales $4,060,000.00 100.0% 4 Cost of goods sold 2,111,200.00 58.0% 5 Gross profit $1,948,800.00 42.0% 6 Selling expenses $1,055,600.00 23.0% 7 Administrative expenses 649,600.00 14.0% 8 Total operating expenses $1,705,200.00 37.0% 9 Operating income $243,600.00 5.0% 10 Other income 118,00

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

Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. The Tannenhill’s data are expressed in dollars. The electronics industry averages are expressed in percentages. 1 Tannenhill Company Electronics Industry Average 2 Sales $4,060,000.00 100.0% 3 Cost of goods sold 2,111,200.00 58.0 4 Gross profit $1,948,800.00 42.0% 5 Selling expenses $1,055,600.00 23.0% 6 Administrative expenses 649,600.00 14.0 7 Total operating expenses $1,705,200.00 37.0% 8 Operating income $243,600.00 5.0% 9 Other income 118,000.00 2.9 10 $361,600.00 7.9% 11 Other expense 72,000.00 1.8 12 Income before income tax $289,600.00 6.1% 13 Income tax expense 78,000.00 1.9 14 Net income $211,600.00 4.2% A. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. Round percentages to one decimal place. Enter all amounts as positive numbers. B. As far as the data permit, comment on significant relationships revealed by the comparisons. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. Round percentages to one decimal place. Enter all amounts as positive numbers. Tannenhill Company Common-Sized Income Statement For the Year Ended December 31 1 Tannenhill Company Tannenhill Company Electronics Industry Average 2 Amount Percent 3 Sales $4,060,000.00 100.0% 4 Cost of goods sold 2,111,200.00 58.0% 5 Gross profit $1,948,800.00 42.0% 6 Selling expenses $1,055,600.00 23.0% 7 Administrative expenses 649,600.00 14.0% 8 Total operating expenses $1,705,200.00 37.0% 9 Operating income $243,600.00 5.0% 10 Other income 118,00

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 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.

Similar questions