Revenue and expense data for the current calendar year for Dawg Electronics Company and for the electronics
Fantastic news! We've Found the answer you've been seeking!
Question:
Revenue and expense data for the current calendar year for Dawg Electronics Company and for the electronics industry are as follows. Dawg Electronics Company data are expressed in dollars. The electronics industry averages are expressed in percentages.
Dawg Electronics Company | Electronics Industry Average | ||||
Sales | $ 3,750,000 | 100 | % | ||
Cost of goods sold | (2,062,500) | (61.0) | |||
Gross profit | $1,687,500 | 39.0 | % | ||
Selling expenses | $(1,125,000) | (23.0) | % | ||
Administrative expenses | (262,500) | (10.0) | |||
Total operating expenses | $(1,387,500) | (33.0) | % | ||
Operating income | $300,000 | 6.0 | % | ||
Other revenue and expense: | |||||
Other revenue | 15,000 | 3.0 | |||
Other expense | $(3,750) | (1.0) | |||
Income before income tax | $ 311,250 | 8.0 | % | ||
Income tax expense | (93,750) | (2.5) | |||
Net income | $217,500 | 5.5 | % |
a. Prepare a common-sized income statement comparing the results of operations for Dawg Electronics Company with the industry average. If required, round percentages to one decimal place.
Dawg Electronics Company | |||
Common-Sized Income Statement | |||
Dawg Electronics Company Amount | Dawg Electronics Company Percent | Electronics Industry Average | |
Sales | $3,750,000 | % | 100.0% |
Cost of goods sold | (2,062,500) | % | (61.0)% |
Gross profit | $1,687,500 | % | 39.0% |
Selling expenses | $(1,125,000) | % | (23.0)% |
Administrative expenses | (262,500) | % | (10.0)% |
Total operating expenses | $(1,387,500) | % | (33.0)% |
Operating income | $300,000 | % | 6.0% |
Other revenue and expense: | |||
Other revenue | 15,000 | % | 3.0% |
Other expense | (3,750) | % | (1.0)% |
Income before income tax | $311,250 | % | 8.0% |
Income tax expense | (93,750) | % | (2.5)% |
Net income | $217,500 | % | 5.5% |
b. Which of the following statements is true about Dawg Electronics Company?
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Posted Date: