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Revenue and expense data for the current calendar year for Sorenson Electronics Company and for the electronics industry are as follows. Sorenson Electronics Company data are expressed in dollars. The electronics industry averages are expressed in percentages.   Sorenson Electronics Company   Electronics Industry Average Sales $2,690,000     100 % Cost of goods sold (1,829,200)     (74)   Gross profit $860,800     26 % Selling expenses $(484,200)     (10) % Administrative expenses (188,300)     (10)   Total operating expenses $(672,500)     (20) % Operating income $188,300     6 % Other revenue and expense:           Other revenue 53,800     4   Other expense (26,900)     (3)   Income before income tax $215,200     7 % Income tax expense (80,700)     (5)   Net income $134,500     2 %

Revenue and expense data for the current calendar year for Sorenson Electronics Company and for the electronics industry are as follows. Sorenson Electronics Company data are expressed in dollars. The electronics industry averages are expressed in percentages.   Sorenson Electronics Company   Electronics Industry Average Sales $2,690,000     100 % Cost of goods sold (1,829,200)     (74)   Gross profit $860,800     26 % Selling expenses $(484,200)     (10) % Administrative expenses (188,300)     (10)   Total operating expenses $(672,500)     (20) % Operating income $188,300     6 % Other revenue and expense:           Other revenue 53,800     4   Other expense (26,900)     (3)   Income before income tax $215,200     7 % Income tax expense (80,700)     (5)   Net income $134,500     2 %

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Revenue and expense data for the current calendar year for Sorenson Electronics Company and for the electronics industry are as follows. Sorenson Electronics Company data are expressed in dollars. The electronics industry averages are expressed in percentages.

  Sorenson
Electronics
Company		   Electronics
Industry
Average
Sales $2,690,000     100 %
Cost of goods sold (1,829,200)     (74)  
Gross profit $860,800     26 %
Selling expenses $(484,200)     (10) %
Administrative expenses (188,300)     (10)  
Total operating expenses $(672,500)     (20) %
Operating income $188,300     6 %
Other revenue and expense:          
Other revenue 53,800     4  
Other expense (26,900)     (3)  
Income before income tax $215,200     7 %
Income tax expense (80,700)     (5)  
Net income $134,500     2 %
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. Sorenson Electronics Company Common-Sized Income Statement Sorenson Electronics Sorenson Electronics Electronics Industry Company Amount Company Percent Average Sales $2,690,000 % 100% Cost of Goods Sold (1,829,200) (74)% Gross profit $860,800 26% Selling Expenses $(484,200) % (10)% Administrative Expenses (188,300) % (10)% Total operating expenses $(672,500) % (20)% Operating income $188,300 % 6% Other revenue and expense Other revenue 53,800 % 4% Other expense (26,900) % (3)% Income before income tax $215,200 7% Income tax expense (80,700) (5)% Net income $134,500 % 2%
Transcribed Image Text: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. Sorenson Electronics Company Common-Sized Income Statement Sorenson Electronics Sorenson Electronics Electronics Industry Company Amount Company Percent Average Sales $2,690,000 % 100% Cost of Goods Sold (1,829,200) (74)% Gross profit $860,800 26% Selling Expenses $(484,200) % (10)% Administrative Expenses (188,300) % (10)% Total operating expenses $(672,500) % (20)% Operating income $188,300 % 6% Other revenue and expense Other revenue 53,800 % 4% Other expense (26,900) % (3)% Income before income tax $215,200 7% Income tax expense (80,700) (5)% Net income $134,500 % 2%
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