a. Prepare a common-sized income statement comparing the results of operations for Dawg Electronics Company with the industry average. If required, round percentages to a decimal place Dawg Electronics Company Common-Sized Income Statement Dawg Electronics Electronics Industry Company Percent Average Dawg Electronics Company Amount Sales $ 4,710,000 100 % 100.0% Cost of goods sold (3,202,800) 1,507,20 x (74.0) Gross profit Selling expenses Administrative expenses Total operating expenses Operating income Other revenue and expense: Other revenue i (235,500) $ (1.130,400) 376,800 18,840 $ 1,507,200 74 X 26.0% $ (894,900) " (14.0) % (6.0) (20.0)% 6.0% 3.0 Other expense (4,710) (2.0) Income before income tax $ 390,930 7.0% Income tax expense (94,200) (2.0) Net income $ 296,730 8 5.0 % b. Which of the following statements is true about Dawg Electronics Company? The cause of the higher selling expenses as a percent of sales, relative to the industry, should be investigated further.