Common-Sized Income Statement

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	%

Question Content Area

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 blank

	Dawg Electronics Company Amount	Dawg Electronics Company Percent	Electronics Industry Average
Sales	$3,750,000	fill in the blank ca73580a6fb707e_1%	100.0%
Cost of goods sold	(2,062,500)	fill in the blank ca73580a6fb707e_2%	(61.0)%
Gross profit	$1,687,500	fill in the blank ca73580a6fb707e_3%	39.0%
Selling expenses	$(1,125,000)	fill in the blank ca73580a6fb707e_4%	(23.0)%
Administrative expenses	(262,500)	fill in the blank ca73580a6fb707e_5%	(10.0)%
Total operating expenses	$(1,387,500)	fill in the blank ca73580a6fb707e_6%	(33.0)%
Operating income	$300,000	fill in the blank ca73580a6fb707e_7%	6.0%
Other revenue and expense:	blank	blank	blank
Other revenue	15,000	fill in the blank ca73580a6fb707e_8%	3.0%
Other expense	(3,750)	fill in the blank ca73580a6fb707e_9%	(1.0)%
Income before income tax	$311,250	fill in the blank ca73580a6fb707e_10%	8.0%
Income tax expense	(93,750)	fill in the blank ca73580a6fb707e_11%	(2.5)%
Net income	$217,500	fill in the blank ca73580a6fb707e_12%	5.5%