Common$-$Sized Income Statement

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 $$4,000,000100\mathrm{.}0\%$

Cost of merchandise sold $2,120,00060\mathrm{.}0$

Gross profit $$1,880,00040\mathrm{.}0\%$

Selling expenses $$1,080,00024\mathrm{.}0\%$

Administrative expenses $640,00014\mathrm{.}0$

Total operating expenses $$1,720,00038\mathrm{.}0\%$

Income from operations $$160,0002\mathrm{.}0\%$

Other revenue and expense:

Other revenue $120,0003\mathrm{.}0$

Other expense $(80,000)2\mathrm{.}0$

Income before income tax expense $$200,0003\mathrm{.}0\%$

Income tax expense $80,0002\mathrm{.}0$

Net income $$120,0001\mathrm{.}0\%$

Question Content Area

a$.$ Prepare a common$-$sized income statement comparing the results of operations for Tannenhill Company with the industry average. Enter all amounts as positive numbers. Round to the nearest whole percentage.

Tannenhill Company

Common$-$Sized Income Statement

For the Year Ended December $31$

Tannenhill

Company

Amount Tannenhill

Company

Percent Electronics

Industry

Average

Sales $$4,000,000$ fill in the blank $2$b$93$cdf$5$c$010$f$87\_1$

$\%100\%$

Cost of merchandise sold $2,120,000$ fill in the blank $2$b$93$cdf$5$c$010$f$87\_2$

$\%60\%$

Gross profit $$1,880,000$ fill in the blank $2$b$93$cdf$5$c$010$f$87\_3$

$\%40\%$

Selling expenses $1,080,000$ fill in the blank $2$b$93$cdf$5$c$010$f$87\_4$

$\%24\%$

Administrative expenses $640,000$ fill in the blank $2$b$93$cdf$5$c$010$f$87\_5$

$\%14\%$

Total operating expenses $$1,720,000$ fill in the blank $2$b$93$cdf$5$c$010$f$87\_6$

$\%38\%$

Income from operations $160,000$ fill in the blank $2$b$93$cdf$5$c$010$f$87\_7$

$\%2\%$

Other revenue and expense:

Other revenue $120,000$ fill in the blank $2$b$93$cdf$5$c$010$f$87\_8$

$\%3\%$

Other expense $(80,000)$ fill in the blank $2$b$93$cdf$5$c$010$f$87\_9$

$\%2\%$

Income before income tax expense $$200,000$ fill in the blank $2$b$93$cdf$5$c$010$f$87\_10$

$\%3\%$

Income tax expense $80,000$ fill in the blank $2$b$93$cdf$5$c$010$f$87\_11$

$\%2\%$

Net income $$120,000$ fill in the blank $2$b$93$cdf$5$c$010$f$87\_12$

$\%1\%$

Question Content Area

b$.$ The company is managing the cost of manufacturing product

than the industry, and has slightly

selling and administrative expenses relative to the industry. The combined impact causes net income as a percent of sales to be

than the industry average.