Each of the following gross profit percentages is expressed interms of cost. 1. 23%. 2. 29%. 3. 38%. 4. 58%. Indicate the grossprofit percentage in terms of sales for each of the above. (Roundratios to 2 decimal places, e.g. 78.70%.) Gross profit in terms ofcost Gross profit in terms of sales 1. 23% % 2. 29% % 3. 38% % 4.58% %
Each of the following gross profit percentages is expressed interms of cost. 1. 23%. 2. 29%. 3. 38%. 4. 58%. Indicate the grossprofit percentage in terms of sales for each of the above. (Roundratios to 2 decimal places, e.g. 78.70%.) Gross profit in terms ofcost Gross profit in terms of sales 1. 23% % 2. 29% % 3. 38% % 4.58% %
Unlock all answers
Related questions
Common-Sized Income Statement
Revenue and expense data for the current calendar year forTannenhill Company and for the electronics industry are as follows.Tannenhillâs data are expressed in dollars. The electronicsindustry averages are expressed in percentages.
| Tannenhill Company | Electronics Industry Average | ||||
| Sales | $2,240,000 | 100 | % | ||
| Cost of goods sold | 1,478,400 | 71 | |||
| Gross profit | $761,600 | 29 | % | ||
| Selling expenses | $448,000 | 16 | % | ||
| Administrative expenses | 179,200 | 7 | |||
| Total operating expenses | $627,200 | 23 | % | ||
| Operating income | $134,400 | 6 | % | ||
| Other revenue | 44,800 | 2 | |||
| $179,200 | 8 | % | |||
| Other expense | 22,400 | 1 | |||
| Income before income tax | $156,800 | 7 | % | ||
| Income tax expense | 67,200 | 4 | |||
| Net income | $89,600 | 3 | % | ||
a. Prepare a common-sized income statementcomparing the results of operations for Tannenhill Company with theindustry average. If required, round percentages to one decimalplace. Enter all amounts as positive numbers.
| Tannenhill Company | |||
| Common-Sized Income Statement | |||
| Forthe Year Ended December 31 | |||
| Tannenhill Company Amount | Tannenhill Company Percent | Electronics Industry Average | |
| Sales | $2,240,000 | % | 100.0% |
| Cost of goods sold | 1,478,400 | % | 71% |
| Gross profit | $761,600 | % | 29% |
| Selling expenses | $448,000 | % | 16% |
| Administrative expenses | 179,200 | % | 7% |
| Total operating expenses | $627,200 | % | 23% |
| Income from operations | $134,400 | % | 6% |
| Other revenue | 44,800 | % | 2% |
| $179,200 | % | 8% | |
| Other expense | 22,400 | % | 1% |
| Income before income tax | $156,800 | % | 7% |
| Income tax expense | 67,200 | % | 4% |
| Net income | $89,600 | % | 3% |
b. The company is managing the cost ofmanufacturing product than the industry, and has slightly sellingand administrative expenses relative to the industry. The combinedimpact causes net income as a percent of sales to be than theindustry average.
The following items were taken from the financial statements ofTilden, Inc., over a three-year period:
| Item | Year 3 | Year 2 | Year 1 |
| Sales | $360,000 | $335,000 | $290,000 |
| Cost of goods sold | 225,000 | 205,000 | 185,000 |
| Gross profit | $135,000 | $130,000 | $105,000 |
Compute the following for each of the above time periods.
a. The amount and percentage change from Year 2 to Year 3.
b. The amount and percentage change from Year 1 to Year 2.
If required, round your answers to one decimal place.
| Item | Year 3 | Year 2 | ||||
| $ | Percent | $ | Percent | |||
| Sales | $ | % | $ | % | ||
| Cost of Goods Sold | % | % | ||||
| Gross Profit | $ | % | $ | % | ||
