Sorenson Electronics Company Electronics Industry Average Sales 100% Cost of goods sold $2,540,000 (1.524,000) (65) Gross profit $1,016,000 35 % Selling expenses $(609,600) (15) % Administrative expenses (220,600) (14) $(838,200) (29) % $177,800 Total operating expenses Operating income other revenue and expense Other revenue 50,800 4 Other expense (25.400) (3) $203,200 7 Income before income tax Income tax expense (76,200) (4) Net income $127,000 3 % a. Prepare a common-sized income statement comparing the results of operations for Sorenson Electronics Company with the industry average. If required, round a. Prepare a common-sized income statement comparing the results of operations for Sorenson Electronics Company with the industry average. If required, round percentages to one decimal place. Sorenson Electronics Company Common-sized Income Statement Sales Sorenson Electronics Sorenson Electronics Electronics Industry Company Amount Company Percent Average $2,540,000 100% (1,524,000) % (65) $1,016,000 % 35% $(609,600) (228,600) (15) $(838,200) (29)% $177,800 9 6% Cost of Goods Sold Gross profit Selling Expenses Administrative Expenses Total operating expenses Operating income Other revenue and expense: Other revenue Other expense Income before income tax Income tax expense Net income 4% (3) 50,800 (25,400) $203,200 (76,200) 11 (4)% $127.000 3%