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 CompanyCommon-Sized Income StatementFor the Year Ended December 31Tannenhill Tannenhill ElectronicsCompanyCompanyIndustryAmountPercentAverageSales$1,390,000%100.0%Cost of merchandise sold736,70059%Gross profit$653,30041%Selling expenses$417,00025%Administrative expenses152,900%10%Total operating expenses$569,90035%Income from operations$83,4006%Other revenue and expense:Other revenue27,800%2%Other expense(13,900)1%Income before income tax$97,3007%Income tax expense41,7005%Net income$55,600%2%econ.docxShow allP Type here to searcha6:06 AM59°F10/30/2021Cicp12prt scdeleteC0%24 Common-Sized Income StatementRevenue 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 industryaverages are expressed in percentages.ElectronicsTannenhillIndustryCompanyAverage$1,390,000100 %Sales736,70059Cost of merchandise sold$653,30041 %Gross profit$417,00025 %Selling expensesAdministrative expenses152,90010Total operating expenses$569,90035 %Income from operations$83,4006 %Other revenue and expense:Other revenue27,8002Other expense(13,900)1Income before income tax expense$97,3007 %Income tax expense41,700Net income$55,6002 %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.econ.docxShow allType here to search6:05 AM59 F局10/30/202112prt sc005.

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Description: 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 CompanyCommon-Sized

Solution:- Calculation of Common based income statement using below formula as follows:- =Each item…

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a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry Enter all amounts as positive numbers. Tannenhill Company Common-Sized Income Statement For the Year Ended December 31 Tannenhill Tannenhill Electronics Company Industry Percent Company Amount Average Sales $1,390,000 100.0% Cost of merchandise sold 736,700 59% Gross profit $653,300 41% Selling expenses $417,000 25% Administrative expenses 152,900 10% Total operating expenses $569,900 35% Income from operations $83,400 6% Other revenue and expense: Other revenue 27,800 2% Other expense (13,900) 16 Income before income tax $97,300 7% Income tax exxpense 41,700 5% Net income $55,600

a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry Enter all amounts as positive numbers. Tannenhill Company Common-Sized Income Statement For the Year Ended December 31 Tannenhill Tannenhill Electronics Company Industry Percent Company Amount Average Sales $1,390,000 100.0% Cost of merchandise sold 736,700 59% Gross profit $653,300 41% Selling expenses $417,000 25% Administrative expenses 152,900 10% Total operating expenses $569,900 35% Income from operations $83,400 6% Other revenue and expense: Other revenue 27,800 2% Other expense (13,900) 16 Income before income tax $97,300 7% Income tax exxpense 41,700 5% Net income $55,600

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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