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. Electronics Tannenhill Industry Company Average Sales Cost of goods sold Gross profit $4,000,000 100% (2,120,000) (60) $1,880,000 40% Selling expenses Administrative expenses $(1,080,000) (24)% (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% 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 Tannenhill Tannenhill Electronics Company Company Industry Line Item Description Amount Percent 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 Feedback Check My Work a. Show each item as a percentage of net sales. b. The company is managing the cost of manufacturing product better than the industry, and has slightly higher and administrative expenses relative to the industry. The combined impact causes net income as a percent of sales to be better than the industry average. Feedback Check My Work b. Consider the relationship of each account to net sales and how it relates to the industry numbers. selling