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 expresse dollars. The electronics industry averages are expressed in percentages. Electronics Tannenhill Industry Company Average Sales $2,580,000 100 % Cost of merchandise sold 1,728,600 71 Gross profit $851,400 29 % Selling expenses $490,200 16 % Administrative expenses 206,400 Total operating expenses $696,600 23 % Income from operations $154,800 6 % Other revenue and expense: Other revenue 51,600 Other expense (25,800) 1 Income before income tax expense $180,600 7 % Income tax expense 77,400 4 Net income $103,200 3 %

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 expresse dollars. The electronics industry averages are expressed in percentages. Electronics Tannenhill Industry Company Average Sales $2,580,000 100 % Cost of merchandise sold 1,728,600 71 Gross profit $851,400 29 % Selling expenses $490,200 16 % Administrative expenses 206,400 Total operating expenses $696,600 23 % Income from operations $154,800 6 % Other revenue and expense: Other revenue 51,600 Other expense (25,800) 1 Income before income tax expense $180,600 7 % Income tax expense 77,400 4 Net income $103,200 3 %

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 3E

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