FUND OF FIN ACCTG W/ CONNECT (LL) >BI<
16th Edition
ISBN: 9781260024500
Author: PHILLIPS
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 6, Problem 6.22E
(1)
To determine
To prepare: Multi-step income statement of Incorporation W for the year 2012
(2)
To determine
The gross profit and gross profit percentage of Incorporation W, in 2012
(3)
To determine
To indicate: Whether the gross profit percentage declined or improved in 2012, compared to 2011 gross profit percentage of 39.4%
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
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.
TannenhillCompany
ElectronicsIndustryAverage
Sales
$4,000,000
100.0
%
Cost of goods sold
(2,120,000)
(60.0)
Gross profit
$1,880,000
40.0
%
Selling expenses
$(1,080,000)
(24.0)
%
Administrative expenses
(640,000)
(14.0)
Total operating expenses
$(1,720,000)
(38.0)
%
Operating income
$160,000
2.0
%
Other revenue and expense:
Other revenue
120,000
3.0
Other expense
(80,000)
(2.0)
Income before income tax expense
$200,000
3.0
%
Income tax expense
(80,000)
(2.0)
Net income
$120,000
1.0
%
a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the…
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. Sorenson Electronics Company data are expressed in dollars. The electronics industry averages are expressed in percentages.
SorensonElectronicsCompany
ElectronicsIndustryAverage
Sales
$1,940,000
100
%
Cost of goods sold
(1,358,000)
(76)
Gross profit
$582,000
24
%
Selling expenses
$(329,800)
(9)
%
Administrative expenses
(116,400)
(9)
Total operating expenses
$(446,200)
(18)
%
Operating income
$135,800
6
%
Other revenue and expense:
Other revenue
38,800
4
Other expense
(19,400)
(3)
Income before income tax
$155,200
7
%
Income tax expense
(58,200)
(5)
Net income
$97,000
2
%
a. Prepare a common-sized income statement comparing the results of operations for Sorenson Electronics Company with the industry average. If…
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.
TannenhillCompany
ElectronicsIndustryAverage
Sales
$2,740,000
100
%
Cost of goods sold
1,753,600
69
Gross profit
$986,400
31
%
Selling expenses
$602,800
18
%
Administrative expenses
219,200
7
Total operating expenses
$822,000
25
%
Operating income
$164,400
6
%
Other revenue
54,800
2
$219,200
8
%
Other expense
27,400
1
Income before income tax
$191,800
7
%
Income tax expense
82,200
5
Net income
$109,600
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…
Chapter 6 Solutions
FUND OF FIN ACCTG W/ CONNECT (LL) >BI<
Ch. 6 - Prob. 1QCh. 6 - If a Chicago-based company ships goods on...Ch. 6 - Define goods available for sale. How does it...Ch. 6 - Define beginning inventory and ending inventory.Ch. 6 - Describe how transportation costs to obtain...Ch. 6 - What is the main distinction between perpetual and...Ch. 6 - Why is a physical count of inventory necessary in...Ch. 6 - What is the difference between FOB shipping point...Ch. 6 - Describe in words the journal entries that are...Ch. 6 - What is the distinction between Sales Returns and...
Ch. 6 - Prob. 11QCh. 6 - In response to the weak economy, your companys...Ch. 6 - Prob. 13QCh. 6 - Why are contra-revenue accounts used rather than...Ch. 6 - What is gross profit? How is the gross profit...Ch. 6 - Prob. 1MCCh. 6 - Prob. 2MCCh. 6 - Prob. 3MCCh. 6 - Prob. 4MCCh. 6 - Prob. 5MCCh. 6 - Prob. 6MCCh. 6 - Prob. 7MCCh. 6 - Prob. 8MCCh. 6 - Prob. 9MCCh. 6 - Prob. 10MCCh. 6 - Distinguishing among Operating Cycles Identify the...Ch. 6 - Calculating Shrinkage in a Perpetual Inventory...Ch. 6 - Prob. 6.3MECh. 6 - Inferring Purchases Using the Cost of Goods Sold...Ch. 6 - Evaluating Inventory Cost Components Assume...Ch. 6 - Prob. 6.6MECh. 6 - Recording Journal Entries for Purchases and Safes...Ch. 6 - Prob. 6.8MECh. 6 - Recording Journal Entries for Sales and Sales...Ch. 6 - Prob. 6.10MECh. 6 - Prob. 6.11MECh. 6 - Calculating Shrinkage and Gross Profit in a...Ch. 6 - Preparing a Multistep Income Statement Sellall...Ch. 6 - Prob. 6.14MECh. 6 - Computing and Interpreting the Gross Profit...Ch. 6 - Interpreting Changes in Gross Profit Percentage...Ch. 6 - Prob. 6.17MECh. 6 - Understanding Relationships among Gross Profit and...Ch. 6 - Relating Financial Statement Reporting to Type of...Ch. 6 - Prob. 6.2ECh. 6 - Identifying Shrinkage and Other Missing inventory...Ch. 6 - Prob. 6.4ECh. 6 - Prob. 6.5ECh. 6 - Inferring Missing Amounts Based on Income...Ch. 6 - Prob. 6.7ECh. 6 - Prob. 6.8ECh. 6 - Reporting Purchases, Purchase Discounts, and...Ch. 6 - Prob. 6.10ECh. 6 - Items Included in Inventory PC Mall, Inc., is a...Ch. 6 - Prob. 6.12ECh. 6 - Prob. 6.13ECh. 6 - Reporting Net Sales with Credit Sales and Sales...Ch. 6 - Prob. 6.15ECh. 6 - Prob. 6.16ECh. 6 - Prob. 6.17ECh. 6 - Determining the Effects of Credit Sales, Sales...Ch. 6 - Prob. 6.19ECh. 6 - Inferring Missing Amounts Based on Income...Ch. 6 - Prob. 6.21ECh. 6 - Prob. 6.22ECh. 6 - (Supplement 6A) Recording Purchases and Sales...Ch. 6 - Prob. 6.1CPCh. 6 - Prob. 6.2CPCh. 6 - Prob. 6.3CPCh. 6 - Prob. 6.4CPCh. 6 - (Supplement A) Recording Inventory Transactions...Ch. 6 - Prob. 6.1PACh. 6 - Reporting Purchase Transactions between Wholesale...Ch. 6 - Recording Sales with Discounts and Returns and...Ch. 6 - Prob. 6.4PACh. 6 - (Supplement A) Recording Inventory Transactions...Ch. 6 - Prob. 6.1PBCh. 6 - Reporting Purchase Transactions between Wholesale...Ch. 6 - Prob. 6.3PBCh. 6 - Prob. 6.4PBCh. 6 - (Supplement A) Recording Inventory Transactions...Ch. 6 - Accounting for Inventory Orders, Purchases, Sales,...Ch. 6 - Prob. 6.1SDCCh. 6 - Prob. 6.2SDCCh. 6 - Internet-Based Team Research: Examining an Annual...Ch. 6 - Evaluating the Results of Merchandising Operations...Ch. 6 - Prob. 6.6SDCCh. 6 - Prob. 6.1CC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- 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. TannenhillCompany ElectronicsIndustryAverage Sales $2,180,000 100 % Cost of goods sold 1,417,000 69 Gross profit $763,000 31 % Selling expenses $457,800 18 % Administrative expenses 174,400 7 Total operating expenses $632,200 25 % Operating income $130,800 6 % Other income 43,600 2 $174,400 8 % Other expense 21,800 1 Income before income tax $152,600 7 % Income tax expense 65,400 5 Net income $87,200 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…arrow_forwardRevenue 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. TannenhillCompany ElectronicsIndustryAverage Sales $4,000,000 100.0 % Cost of merchandise sold 2,120,000 60.0 Gross profit $1,880,000 40.0 % Selling expenses $1,080,000 24.0 % Administrative expenses 640,000 14.0 Total operating expenses $1,720,000 38.0 % Income from operations $160,000 2.0 % Other revenue and expense: Other revenue 120,000 3.0 Other expense (80,000) 2.0 Income before income tax expense $200,000 3.0 % Income tax expense 80,000 2.0 Net income $120,000 1.0 % a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. Enter all amounts as positive numbers.…arrow_forwardRevenue 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. TannenhillCompany ElectronicsIndustryAverage Sales $2,540,000 100 % Cost of merchandise sold 1,473,200 63 Gross profit $1,066,800 37 % Selling expenses $660,400 22 % Administrative expenses 254,000 9 Total operating expenses $914,400 31 % Income from operations $152,400 6 % Other revenue and expense: Other revenue 50,800 2 Other expense (25,400) 1 Income before income tax expense $177,800 7 % Income tax expense 76,200 4 Net income $101,600 3 % Question Content Area 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…arrow_forward
- Ramos Company Ramos Company included the following information in its annual report: 2011 2010 2009 Sales $178,400 $162,500 $155,500 Cost of goods sold 115,000 102,500 100,000 Operating expenses 50,000 50,000 45,000 Net income 13,400 10,000 10,500 Refer to the information for Ramos Company. In a common size income statement for 2011, the operating expenses are expressed as: Group of answer choices 100 % 50.6 % 30.3 % 28.0 %arrow_forwardRevenue 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. SorensonElectronicsCompany ElectronicsIndustryAverage 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 %arrow_forwardRevenue 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. TannenhillCompany ElectronicsIndustryAverage Sales $800,000 100 % Cost of goods sold 512,000 70 Gross profit $288,000 30 % Selling expenses $176,000 17 % Administrative expenses 64,000 7 Total operating expenses $240,000 24 % Operating income $48,000 6 % Other revenue 16,000 2 $64,000 8 % Other expense 8,000 1 Income before income tax $56,000 7 % Income tax expense 24,000 5 Net income $32,000 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.arrow_forward
- Profitability Analysis Erin Enterprises reports the following information on its year-end income statement: Net Sales $200,000 Operating Expenses $40,000 Cost of Goods Sold 110,000 Other Income 25,000 Required Calculate Erin’s gross profit percentage and return on sales ratio.(Round answer to one decimal place.) Gross profit percentage = Answer Return on sales ratio = Answerarrow_forwardRevenue 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 $4,060,000.00 100.0% 3 Cost of goods sold 2,111,200.00 58.0 4 Gross profit $1,948,800.00 42.0% 5 Selling expenses $1,055,600.00 23.0% 6 Administrative expenses 649,600.00 14.0 7 Total operating expenses $1,705,200.00 37.0% 8 Operating income $243,600.00 5.0% 9 Other income 118,000.00 2.9 10 $361,600.00 7.9% 11 Other expense 72,000.00 1.8 12 Income before income tax $289,600.00 6.1% 13 Income tax expense 78,000.00 1.9 14 Net income $211,600.00 4.2% A. 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. B. As far as the data permit, comment…arrow_forwardRevenue 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. 1 Tannenhill Company Electronics Industry Average 2 Sales $4,720,000.00 100.0% 3 Cost of goods sold 2,454,400.00 57.0 4 Gross profit $2,265,600.00 43.0% 5 Selling expenses $1,250,800.00 23.5% 6 Administrative expenses 708,000.00 13.0 7 Total operating expenses $1,958,800.00 36.5% 8 Operating income $306,800.00 6.5% 9 Other revenue 102,000.00 2.2 10 $408,800.00 8.7% 11 Other expense 62,000.00 1.3 12 Income before income tax $346,800.00 7.4% 13 Income tax expense 72,000.00 1.5 14 Net income $274,800.00 5.9% A. Prepare a common-sized income statement comparing the results of operations for…arrow_forward
- salamagundi, inc. has the following income statement: For the year ended December 31, 2021 net sales: $160 Cost of goods sold: $100 gross profit: $60 Operating expenses: $40 Net income: $20 Using vertical analysis, what percentage is assigned to operating expenses? a. 25% b. 40% c. 66.7% d. 200%arrow_forwardPolaris Industries Inc. is the biggest snowmobile manufacturer in the world. It reported the following amounts in its financial statements (in millions):2012 2011 2010 2009Net Sales Revenue $3,200 $2,660 $1,990 $1,570Cost of Goods Sold 2,280 1,900 1,460 1,170Average Inventory 320 270 210 200Required:1. Calculate to one decimal place the inventory turnover ratio and average days to sell inventoryfor 2012, 2011, and 2010.2. Comment on any trends, and compare the effectiveness of inventory managers at Polaris toinventory managers at its main competitor, Arctic Cat, where inventory turned over 5.4 timesin 2012 (67.6 days to sell). Both companies use the same inventory costing method (FIFO)arrow_forwardDetermining Cost of Goods Sold For a recent year, TechMart reported sales of $44,476 million. Its gross profit was $11,564 million. What was the amount of TechMart's cost of goods sold? (Enter answer in millions.)$ millionarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
How To Analyze an Income Statement; Author: Daniel Pronk;https://www.youtube.com/watch?v=uVHGgSXtQmE;License: Standard Youtube License