A common sized income statement
Company
Sales
$1,850,000
Average
100%
Cost of goods sold
999,000
60
Gross profit
$851,000
40 %
Selling expenses
$536,500
24 %
Administrative expenses
203,500
10
Total operating expenses
$740,000
34 %
Operating income
$111,000
6%
Other revenue
37,000
2
$148,000
8 %
Other expense
18,500
1
Income before income tax
$129,500
7%
Income tax expense
55,500
4
Net income
$74,000
3%
a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Con
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