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.
Tannenhill
Electronics
Company
Industry
Average
Sales
$2,350,000
100 %
Cost of merchandise sold
1,480,500
66
Gross profit
$869,500
34 %
Selling expenses
$517,000
20 %
Administrative expenses
211,500
8
Total operating expenses
$728,500
28 %
Income from operations
$141,000
6 %
Other revenue and expense:
Other revenue
47,000
2
Other expense
(23,500)
1
Income before income tax expense
$164,500
7 %
Income tax expense
70,500
5
Net income
$94,000
2 %
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
Common-Sized Income Statement
For the Year Ended December 31
Tannenhill Tannenhill Electronics
Company Company Industry
Amount Percent Average
Sales
$2,350,000
100.0%
Cost of merchandise sold
1,480,500
66%
Gross profit
$869,500
34%
Selling expenses
$517,000
20%
Administrative expenses
211,500
8%
Total operating expenses
$728,500
28%
Income from operations
$141,000
6%
Other revenue and expense:
Other revenue
47,000
2%
Other expense
(23,500)
1%
Income before income tax
$164,500
7%
Income tax expense
70,500
5%
Net income
$94,000
2%
