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. Tannenhill Company Electronics Industry Average Sales $770,000 100 % Cost of goods sold 415,800 59 Gross profit $354,200 41 % Selling expenses $223,300 25 % Administrative expenses 84,700 10 Total operating expenses $308,000 35 % Operating income $46,200 6 % Other income 15,400 2 $61,600 8 % Other expense 7,700 1 Income before income tax $53,900 7 % Income tax expense 23,100 5 Net income $30,800 2 % 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 Common-Sized Income Statement For the Year Ended December 31 Tannenhill Company Amount Tannenhill Company Percent Electronics Industry Average Sales $770,000 % 100.0% Cost of goods sold 415,800 % 59% Gross profit $354,200 % 41% Selling expenses $223,300 % 25% Administrative expenses 84,700 % 10% Total operating expenses $308,000 % 35% Operating income $46,200 % 6% Other income 15,400 % 2% $61,600 % 8% Other expense 7,700 % 1% Income before income tax $53,900 % 7% Income tax expense 23,100 % 5% Net income $30,800 % 2% Feedback a. Show each item as a percentage of net sales. Learning Objective 2 b. The company is managing the cost of manufacturing product as well as or better than the industry, and has slightly higher selling 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 b. Consider the relationship of each account to net sales and how it relates to the industry numbers. Learning Objective 2 Feedback Partially correct Check My Work1 more Check My Work uses remaining. PreviousNext
a.
Tannenhill Company | |||
Common-Sized Income Statement | |||
For the Year Ended December 31 | |||
Tannenhill Company | Electronics Industry Average | ||
Amount | Percent | ||
Sales | 770000 | 100% | 100% |
Cost of goods sold | 415800 | 54% | 59% |
Gross profit | 354200 | 46% | 41% |
Selling expenses | 223300 | 29% | 25% |
Administrative expenses | 84700 | 11% | 10% |
Total operating expenses | 308000 | 40% | 35% |
Operating income | 46200 | 6% | 6% |
Other income | 15400 | 2% | 2% |
61600 | 8% | 8% | |
Other expense | 7700 | 1% | 1% |
Income before income tax | 53900 | 7% | 7% |
Income tax expense | 23100 | 3% | 5% |
Net income | 30800 | 4% | 2% |
b. The company is managing the cost of manufacturing product better than the industry, and has slightly higher selling 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.
Common-Sized Income Statement Revenue and expense data for the current calendar year for Tannenhill Company and...
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 $1,980,000 100 % Cost of goods sold 1,128,600 61 Gross profit $851,400 39% Selling expenses $534,600 23% Administrative expenses 198,000 10 Total operating expenses $732,600 33% Operating income $118,800 6 % Other income 39,600 2. $158,400 8...
Show Me How Calculator 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. Tannenhill Company Electronics Industry Average Sales 100.0 % 60.0 40.0 % 24.0 % Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Operating income Other revenue $4,000,000 2,120,000 $1,680,000 $1,080,000 640,000 $1,720,000 $160,000 120,000 14.0...
Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. The Tannenhill’s data are expressed in dollars. The electronics industry averages are expressed in percentages. 1 Tannenhill Company Electronics Industry Average 2 Sales $4,000,000.00 100.0% 3 Cost of goods sold 2,120,000.00 60.0 4 Gross profit $1,880,000.00 40.0% 5 Selling expenses $1,080,000.00 24.0% 6 Administrative expenses 640,000.00 14.0 7 Total operating expenses $1,720,000.00 38.0% 8 Operating income $160,000.00 2.0% 9 Other...
Show Me How Calculator 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. Tannenhill Company Electronics Industry Average Sales 100.0 % 60.0 40.0 % 24.0 % Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Operating income Other revenue $4,000,000 2,120,000 $1,680,000 $1,080,000 640,000 $1,720,000 $160,000 120,000 14.0...
question#2 SHOW Me How Calculator 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 Company Electronics Industry Average Sales 100 % Cost of goods sold Gross profit 26 % Selling expenses 14 % $1,870,000 1,290,300 $579,700 $336,600 130,900 $467,500 $112,200 37,400 Administrative expenses Total operating expenses Operating income Other income $149,600 Other expense...
Instructions Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. The Tannenhill’s data are expressed in dollars. The electronics industry averages are expressed in percentages. 1 Tannenhill Company Electronics Industry Average 2 Sales $4,920,000.00 100.0% 3 Cost of goods sold 2,533,800.00 56.5 4 Gross profit $2,386,200.00 43.5% 5 Selling expenses $1,328,400.00 24.0% 6 Administrative expenses 787,200.00 14.0 7 Total operating expenses $2,115,600.00 38.0% 8 Operating income $270,600.00 5.5% 9...
Common-Sized Income Statement Revenue and expense data for the current calendar year for Sorenson Electronics Company and for the electronics industry are as follows. The Sorenson Electronics Company data are expressed in dollars. The electronics industry averages are expressed in percentages. Sorenson Electronics Company Electronics Industry Average 101.9 % $1,834,200 34,200 1.9 Sales Sales returns and allowances Net sales Cost of goods sold 100 % $1,800,000 1,098,000 $702,000 Gross profit 34 % 20 % Selling expenses $432,000 Administrative expenses 162,000...
Show Me How Calculator Common-Sted Income Statement Revenue and expense data for the current calendar year for t percentages h is Company and for the electronics industry are as follows. Tannenhil's data are expressed in dollars. The electronics industry everages are expressed in Electronics Sales Tannenhill Company $4,000,000 (2,120,000) Average 100.0 (600) Cost of goods sold $1.880,000 Gross profit Selling expenses Administrative expenses Total operating expenses 40.0 % (240) $(1,080,000) (640,000) $(1,720,000) $160,000 120,000 Operating income Other revenue and expense:...
Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. Round percentages to one decimal place. Enter all amounts as positive numbers. Percentage sign will appear automatically.Tannenhill CompanyCommon-Sized Income StatementFor the Year Ended December 311Tannenhill CompanyTannenhill CompanyElectronics Industry Average2AmountPercent3Sales$4,720,000.00100.0%4Cost of goods sold2,454,400.0057.05Gross profit$2,265,600.0043.0%6Selling expenses$1,250,800.0023.57Administrative expenses708,000.0013.08Total operating expenses$1,958,800.0036.5%9Income from operations$306,800.006.5%10Other revenue102,000.002.211$408,800.008.7%12Other expense62,000.001.313Income before income tax$346,800.007.4%14Income tax expense72,000.001.515Net income$274,800.005.9%
Exercise 13-04 (Video) Operating data for Riverbed Corp are presented below. Sales revenue Cost of goods sold Selling expenses Administrative expenses Income tax expense Net income 2020 $880,000 618,640 126,720 61,600 30,800 42,240 2019 $540,000 336,420 64,800 39,420 22,680 76,680 Prepare a schedule showing a vertical analysis for 2020 and 2019. (Round percentages to 1 decimal place, e.g. 12.1%.) RIVERBED CORP Condensed Income Statement For the Years Ended December 31 V 2020 2019 Amount Percent Amount Percent Sales $880,000 %...