Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 13

Common-sized income statement
Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. The Tannenhill 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 Tannenhill 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.