Sorenson Electronics Electronics Industry Company Average Sales $870,000 100 % Cost of goods sold (504,600) (64) Gross profit $365,400 36 % Selling expenses $(217,500) (15) % Administrative expenses (87,000) (15) Total operating expenses $(304,500) (30) % Operating income $60,900 6 % Other revenue and expense: Other revenue 17,400 Other expense (8,700) Income before Income tax $69,600 7 % Income tax expense (26,100) (4) Net income $43,500 3 % a. Prepare a common-sized Income statement comparing the results of operations for Sorenson Electronics Company with the Industry average. If required, round percentages to one decimal place. Soroncor

Sorenson Electronics Electronics Industry Company Average Sales $870,000 100 % Cost of goods sold (504,600) (64) Gross profit $365,400 36 % Selling expenses $(217,500) (15) % Administrative expenses (87,000) (15) Total operating expenses $(304,500) (30) % Operating income $60,900 6 % Other revenue and expense: Other revenue 17,400 Other expense (8,700) Income before Income tax $69,600 7 % Income tax expense (26,100) (4) Net income $43,500 3 % a. Prepare a common-sized Income statement comparing the results of operations for Sorenson Electronics Company with the Industry average. If required, round percentages to one decimal place. Soroncor

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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