Common-Sized Income Statement For the Year Ended December 311 Tannenhill Tannenhill Electronics Company Company Industry Average Amount Percent 3 Sales 4 Cost of goods sold $4,600,000.00 100.0% 2,346,000.00 57.0% 5 Gross profit $2,254,000.00 43.0% Selling expenses $1,242,000.00 24.0% 7 Administrative expenses 690,000.00 13.0% Total operating expenses $1,932,000.00 37.0% Operating income $322,000.00 6.0% 10 Other income 104,000.00 2.3% 11 $426,000.00 8.3% 12 Other expense 64,000.00 1.4% 13 Income before income tax $362,000.00 6.9% 14 Income tax expense 70,000.00 1.5% 15 Net income $292,000.00 5.4%