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Common-Sized Income Statement

Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhills data are expressed in dollars. The electronics industry averages are expressed in percentages.

	Tannenhill Company			Electronics Industry Average
Sales	$2,790,000			100	%
Cost of merchandise sold	1,646,100			65
Gross profit	$1,143,900			35	%
Selling expenses	$697,500			20	%
Administrative expenses	279,000			9
Total operating expenses	$976,500			29	%
Income from operations	$167,400			6	%
Other revenue and expense:
Other revenue	55,800			2
Other expense	(27,900)			1
Income before income tax expense	$195,300			7	%
Income tax expense	83,700			5
Net income	$111,600			2	%

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a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. If required, round percentages to one decimal place. Enter all amounts as positive numbers.

	Tannenhill Company Amount	Tannenhill Company Percent	Electronics Industry Average
Sales	$2,790,000	_____%	100.0%
Cost of merchandise sold	1,646,100	_____%	65%
Gross profit	$1,143,900	_____%	35%
Selling expenses	$697,500	_____%	20%
Administrative expenses	279,000	_____%	9%
Total operating expenses	$976,500	_____%	29%
Income from operations	$167,400	_____%	6%
Other revenue and expense:
Other revenue	55,800	_____%	2%
Other expense	(27,900)	_____%	1%
Income before income tax	$195,300	_____%	7%
Income tax expense	83,700	_____%	5%
Net income	$111,600	_____%	2%