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. TannenhillCompany ElectronicsIndustryAverageSales$2,180,000 100%Cost of goods sold1,417,000 69 Gross profit$763,000 31%Selling expenses$457,800 18%Administrative expenses174,400 7 Total operating expenses$632,200 25%Operating income$130,800 6%Other income43,600 2 $174,400 8%Other expense21,800 1 Income before income tax$152,600 7%Income tax expense65,400 5 Net income$87,200 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 CompanyCommon-Sized Income StatementFor the Year Ended December 31 Tannenhill Company AmountTannenhill Company PercentElectronics Industry AverageSales$2,180,000fill in the blank fbfb8cff0fc6fc4_1%100.0%Cost of goods sold1,417,000fill in the blank fbfb8cff0fc6fc4_2%69%Gross profit$763,000fill in the blank fbfb8cff0fc6fc4_3%31%Selling expenses$457,800fill in the blank fbfb8cff0fc6fc4_4%18%Administrative expenses174,400fill in the blank fbfb8cff0fc6fc4_5%7%Total operating expenses$632,200fill in the blank fbfb8cff0fc6fc4_6%25%Operating income$130,800fill in the blank fbfb8cff0fc6fc4_7%6%Other income43,600fill in the blank fbfb8cff0fc6fc4_8%2% $174,400fill in the blank fbfb8cff0fc6fc4_9%8%Other expense21,800fill in the blank fbfb8cff0fc6fc4_10%1%Income before income tax$152,600fill in the blank fbfb8cff0fc6fc4_11%7%Income tax expense65,400fill in the blank fbfb8cff0fc6fc4_12%5%Net income$87,200fill in the blank fbfb8cff0fc6fc4_13%2%

Percentages are calculated by taking Sales as a base (100%) and dividing all the figures with the…

Answered: Revenue and expense data for the…

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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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	$2,180,000		100	%
Cost of goods sold	1,417,000		69
Gross profit	$763,000		31	%
Selling expenses	$457,800		18	%
Administrative expenses	174,400		7
Total operating expenses	$632,200		25	%
Operating income	$130,800		6	%
Other income	43,600		2
	$174,400		8	%
Other expense	21,800		1
Income before income tax	$152,600		7	%
Income tax expense	65,400		5
Net income	$87,200		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	$2,180,000	fill in the blank fbfb8cff0fc6fc4_1%	100.0%
Cost of goods sold	1,417,000	fill in the blank fbfb8cff0fc6fc4_2%	69%
Gross profit	$763,000	fill in the blank fbfb8cff0fc6fc4_3%	31%
Selling expenses	$457,800	fill in the blank fbfb8cff0fc6fc4_4%	18%
Administrative expenses	174,400	fill in the blank fbfb8cff0fc6fc4_5%	7%
Total operating expenses	$632,200	fill in the blank fbfb8cff0fc6fc4_6%	25%
Operating income	$130,800	fill in the blank fbfb8cff0fc6fc4_7%	6%
Other income	43,600	fill in the blank fbfb8cff0fc6fc4_8%	2%
	$174,400	fill in the blank fbfb8cff0fc6fc4_9%	8%
Other expense	21,800	fill in the blank fbfb8cff0fc6fc4_10%	1%
Income before income tax	$152,600	fill in the blank fbfb8cff0fc6fc4_11%	7%
Income tax expense	65,400	fill in the blank fbfb8cff0fc6fc4_12%	5%
Net income	$87,200	fill in the blank fbfb8cff0fc6fc4_13%	2%

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