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.
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.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 3E
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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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