Sorenson Electronics Electronics Industry Company Average Sales $870,000 100 % Cost of goods sold (504,600) (64) Gross profit $365,400 36 % Selling expenses $(217,500) (15) % Administrative expenses (87,000) (15) Total operating expenses $(304,500) (30) % Operating income $60,900 6 % Other revenue and expense: Other revenue 17,400 Other expense (8,700) Income before Income tax $69,600 7 % Income tax expense (26,100) (4) Net income $43,500 3 % a. Prepare a common-sized Income statement comparing the results of operations for Sorenson Electronics Company with the Industry average. If required, round percentages to one decimal place. Soroncor
Sorenson Electronics Electronics Industry Company Average Sales $870,000 100 % Cost of goods sold (504,600) (64) Gross profit $365,400 36 % Selling expenses $(217,500) (15) % Administrative expenses (87,000) (15) Total operating expenses $(304,500) (30) % Operating income $60,900 6 % Other revenue and expense: Other revenue 17,400 Other expense (8,700) Income before Income tax $69,600 7 % Income tax expense (26,100) (4) Net income $43,500 3 % a. Prepare a common-sized Income statement comparing the results of operations for Sorenson Electronics Company with the Industry average. If required, round percentages to one decimal place. Soroncor
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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