Revenue and expense data for the current calendar year for Shoesmith Electronics Company and for the electronics
Question:
Revenue and expense data for the current calendar year for Shoesmith Electronics Company and for the electronics industry are as follows. The Shoesmith Electronics Company data are expressed in dollars. The electronics industry averages are expressed in percentages.
a. Prepare a common-sized income statement comparing the results of operations for Shoesmith Electronics Company with the industry average. Round to one decimal place. b. As far as the data permit, comment on significant relationships revealed by the comparisons.
Transcribed Image Text:
Shoesmith Electronics Electronics Industry Average Company Sales $4,200,000 105.0% Sales returns and allowances 200,000 5.0 Net sales 100.0% $4,000,000 Cost of goods sold 59.0 2,120,000 Gross profit $1,880,000 41.0% Selling expenses S1,160,000 24.0% Administrative expenses 10.5 480,000 Total operating expenses $1,640,000 34.5% $ 240,000 Operating income 6.5% Other income 84,000 2.1 $ 324,000 8.6% Other expense 60,000 1.5 $ 264,000 120,000 $ 144,000 7.19% Income before income tax 6.0 Income tax Net income 1.1%
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Related Book For
Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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