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.

Line Item Description	Tannenhill Company	Electronics Industry Average
Sales	$4,000,000	100%
Cost of goods sold	(2,120,000)	(60)
Gross profit	$1,880,000	40%
Selling expenses	$(1,080,000)	(24)%
Administrative expenses	(640,000)	(14)
Total operating expenses	$(1,720,000)	(38)%
Operating income	$160,000	2%
Other revenue and expense:
Other revenue	120,000	3
Other expense	(80,000)	(2)
Income before income tax expense	$200,000	3%
Income tax expense	(80,000)	(2)
Net income	$120,000	1%

Question Content Area

a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. Round your answers to the nearest whole percentage.

Tannenhill Company Common-Sized Income Statement For the Year Ended December 31

Line Item Description	Tannenhill Company Amount	Tannenhill Company Percent	Electronics Industry Average
Sales	$4,000,000	Sales%	100%
Cost of goods sold	(2,120,000)	Cost of goods sold	(60)
Gross profit	$1,880,000	Gross profit%	40%
Selling expenses	$(1,080,000)	Selling expenses%	(24)%
Administrative expenses	(640,000)	Administrative expenses	(14)
Total operating expenses	$(1,720,000)	Total operating expenses%	(38)%
Operating income	$160,000	Operating income%	2%
Other revenue and expense:	blank	blank	blank
Other revenue	120,000	Other revenue	3%
Other expense	(80,000)	Other expense	(2)
Income before income tax expense	$200,000	Income before income tax expense%	3%
Income tax expense	(80,000)	Income tax expense	(2)
Net income	$120,000	Net income	1%

Question Content Area

b. The company is managing the cost of manufacturing product fill in the blank 1 of 3

betterworse

than the industry, and has slightly fill in the blank 2 of 3

higherlower

selling and administrative expenses relative to the industry. The combined impact causes net income as a percent of sales to be fill in the blank 3 of 3

betterworse

than the industry average.

Common-sized incame staternent Revenue and expense data for the current calendar year for Tannenhill Company and for the electranics industry are as Follows. Tannentill's data are expressed in dollars. The electronics industry averages, are expressed in percentages. a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry dverage. Round your answers to the nearest whole percentage. 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 averaga