09-03Ex_5e_s

Survey of Accounting (Available Titles Cengagenow)

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Exercise 9-3 Name: Section: Score: 0% Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. A red asterisk (*) will appear in the column to the right of an incorrect answer. a. SORENSON ELECTRONICS COMPANY Common-Size Income Statement For the Year Ended December 31, 20-- Electronics Sorenson Industry Electronics Company Average Amount Percent Sales $2,050,000 102.5% Sales returns and allowances 50,000 2.5% Net sales $2,000,000 100.0% Cost of goods sold 1,100,000 61.0% Gross profit $900,000 39.0% Selling expenses $560,000 23.0% Administrative expenses 220,000 10.0% Total operating expenses $780,000 33.0% Operating income $120,000 6.0% Other income 44,000 2.2% $164,000 8.2% Other expense 20,000 1.0% Income before income tax $144,000 7.2% Income tax expense 60,000 5.0% Net income $84,000 2.2% b. Instructions
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Exercise 9-3 Name: SOLUTION Section: Score: See student sheet for student's score Scoring: ON Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited.
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Unformatted text preview: A red asterisk (*) will appear in the column to the right of an incorrect answer. a. SORENSON ELECTRONICS COMPANY Common-Size Income Statement For the Year Ended December 31, 20--Electronics Sorenson Industry Electronics Company Average Amount Percent Sales $2,050,000 102.5% 102.5% Sales returns and allowances 50,000 2.5% 2.5% Net sales $2,000,000 100.0% 100.0% Cost of goods sold 1,100,000 55.0% 61.0% Gross profit $900,000 45.0% 39.0% Selling expenses $560,000 28.0% 23.0% Administrative expenses 220,000 11.0% 10.0% Total operating expenses $780,000 39.0% 33.0% Operating income $120,000 6.0% 6.0% Other income 44,000 2.2% 2.2% $164,000 8.2% 8.2% Other expense 20,000 1.0% 1.0% Income before income tax $144,000 7.2% 7.2% Income tax expense 60,000 3.0% 5.0% Net income $84,000 4.2% 2.2% b. Instructions COGS is lower than average, but operating expenses are higher. Overall, the company is more profitable than average....
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09-03Ex_5e_s - A red asterisk (*) will appear in the column...

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