Revenue and expense data for the current calendar year for Horizon Publishing Company and for the publishing industry are as follows. The Horizon Publishing Company data are expressed in dollars. The publishing industry averages are expressed in percentages.

a. Prepare a common-size income statement comparing the results of operations for Horizon Publishing Company with the industry average. Round to one digit after the decimal place.
b. As far as the data permit, comment on significant relationships revealed by thecomparisons.

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Horizon Publishing Publishing Company Industry Average 101.0% Sales Sales returns and allowances Cost of goods sold Selling expenses Administrative expenses Other income Other expense Income tax expense $1,414,000 14,000 504,000 574,000 154,000 16,800 23,800 56,000 40.0 39.0 10.5 1.7 4.0