### question instruction revenue and expense data for the current calendar year for tann 4283570

Question

Instruction :

Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. The Tannenhill Company 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

640,000.00

14.0

7

Total operating expenses

\$1,720,000.00

38.0%

8

Income from operations

\$160,000.00

2.0%

9

Other income

120,000.00

3.0

10

\$280,000.00

5.0%

11

Other expense

80,000.00

2.0

12

Income before income tax

\$200,000.00

3.0%

13

Income tax expense

80,000.00

2.0

14

Net income

\$120,000.00

1.0%

As far as the data permit, comment on significant relationships revealed by the comparisons.

Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. Enter all amounts as positive numbers.

Question not attempted.

Score: 0/45

Tannenhill Company

Common-Sized Income Statement

For the Year Ended December 31, 20–

1

Tannenhill Company

Tannenhill Company

Electronics Industry Average

2

Amount

Percent

3

Sales

\$4,000,000.00

100.0%

4

Cost of goods sold

2,120,000.00

60.0%

5

Gross profit

\$1,880,000.00

40.0%

6

Selling expenses

\$1,080,000.00

24.0%

7

640,000.00

14.0%

8

Total operating expenses

\$1,720,000.00

38.0%

9

Income from operations

\$160,000.00

2.0%

10

Other income

120,000.00

3.0%

11

\$280,000.00

5.0%

12

Other expense

80,000.00

2.0%

13

Income before income tax

\$200,000.00

3.0%

14

Income tax expense

80,000.00

2.0%

15

Net income

\$120,000.00

1.0%

 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 Income from operations \$160,000.00 2.0% 9 Other income 120,000.00 3.0 10 \$280,000.00 5.0% 11 Other expense 80,000.00 2.0 12 Income before income tax \$200,000.00 3.0% 13 Income tax expense 80,000.00 2.0 14 Net income \$120,000.00 1.0%