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Brrunno [24]
2 years ago
9

Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. T

annenhill’s data are expressed in dollars. The electronics industry averages are expressed in percentages. Tannenhill Company Electronics Industry Average Sales $2,480,000 100 % Cost of goods sold 1,587,200 70 Gross profit $892,800 30 % Selling expenses $545,600 17 % Administrative expenses 198,400 7 Total operating expenses $744,000 24 % Operating income $148,800 6 % Other revenue 49,600 2 $198,400 8 % Other expense 24,800 1 Income before income tax $173,600 7 % Income tax expense 74,400 5 Net income $99,200 2 %
Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average.
Business
1 answer:
Dmitry_Shevchenko [17]2 years ago
7 0

Answer:

Explanation:

A common sized income statement is a method of financial statement that express every line item on a financial statement as a percentage of sale for the ease of financial analysis

                             Tannenhill's              %        Industry average

Revenue               2,480,000             100                  100%

Cost of Goods      1,587,200                64                    70

Gross profit           892,800                  36                  30

Selling expenses    545600                 22                    17

Admin expenses     198400                  8                       7

Total ope. Expe.       744000                30                    24

Ope. Income             148600                 6                      6

Other Revenue          49600                  2                      2

                                   198400                 8                      8

Other Expenses         24800                  1                        1

PBIT                             173600                7                       7

Income Tax                  74400                 3                       5

Net Income                  99200                4                       2

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On January 1, 2017, Alison, Inc., paid $79,100 for a 40 percent interest in Holister Corporation’s common stock. This investee h
puteri [66]

Answer:

1. Equity valuation in 2018/= $108,100

2. Net income based on fair value = $7,900

Answer:

A. Equity valuation

2017 net income:

Net income = 40% x $41,750 = $16,700

Less dividend = 40% x $14,000 = -$5,600

Net transferrable income = $11,100

2018 net income:

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Investment Valuation:

Year 0 = $79,100

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B.

Fair Valuation method

Closing valuation = $99,000

Less Opening valuation = $91,900

Income recognized in 2018 = $7,100

Explanation:

The equity method of investment valuation requires that the Net Income accruing to the Investee be added to his investment cost and the dividend thereof (if any) be deducted from the same. This gives an equity valuation of the invested sum

fair value on the other hand is based upon the understanding of the market by the parties to a deal; and it's a value the market is thus willing to give in exchange for the shares in hand.

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The employees of Vintage Clothes achieved all of the sales goals for 2017. Vintage decides to reward the employees with a bonus
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Answer:

$52,000

Explanation:

Bonus is 20% on annual net​ income, after deducting the bonus.

Let the annual income after deducting bonus be g

Then,

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Bonus = 0.2g

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Answer:

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Answer:

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