Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill’s data are expressed in dollars. The electronics industry averages are expressed in percentages.
|
1 |
Tannenhill Company |
Electronics Industry Average |
|
|
2 |
Sales |
$4,920,000.00 |
100.0% |
|
3 |
Cost of goods sold |
2,533,800.00 |
56.5 |
|
4 |
Gross profit |
$2,386,200.00 |
43.5% |
|
5 |
Selling expenses |
$1,328,400.00 |
24.0% |
|
6 |
Administrative expenses |
787,200.00 |
14.0 |
|
7 |
Total operating expenses |
$2,115,600.00 |
38.0% |
|
8 |
Operating income |
$270,600.00 |
5.5% |
|
9 |
Other revenue |
120,000.00 |
2.4 |
|
10 |
$390,600.00 |
7.9% |
|
|
11 |
Other expense |
74,000.00 |
1.5 |
|
12 |
Income before income tax |
$316,600.00 |
6.4% |
|
13 |
Income tax expense |
80,000.00 |
1.6 |
|
14 |
Net income |
$236,600.00 |
4.8% |
| A. | Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. Round percentages to one decimal place. Enter all amounts as positive numbers. |
| B. | As far as the data permit, comment on significant relationships revealed by the comparisons. |
Income Statement
Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. Round percentages to one decimal place. Enter all amounts as positive numbers. Percentage sign will appear automatically.
|
Tannenhill Company |
|
Common-Sized Income Statement |
|
For the Year Ended December 31 |
|
1 |
Tannenhill Company |
Tannenhill Company |
Electronics Industry Average |
|
|
2 |
Amount |
Percent |
||
|
3 |
Sales |
$4,920,000.00 |
100.0% |
|
|
4 |
Cost of goods sold |
2,533,800.00 |
56.5 |
|
|
5 |
Gross profit |
$2,386,200.00 |
43.5% |
|
|
6 |
Selling expenses |
$1,328,400.00 |
24.0 |
|
|
7 |
Administrative expenses |
787,200.00 |
14.0 |
|
|
8 |
Total operating expenses |
$2,115,600.00 |
38.0% |
|
|
9 |
Income from operations |
$270,600.00 |
5.5% |
|
|
10 |
Other revenue |
120,000.00 |
2.4 |
|
|
11 |
$390,600.00 |
7.9% |
||
|
12 |
Other expense |
74,000.00 |
1.5 |
|
|
13 |
Income before income tax |
$316,600.00 |
6.4% |
|
|
14 |
Income tax expense |
80,000.00 |
1.6 |
|
|
15 |
Net income |
$236,600.00 |
4.8% |
In: Accounting
What is the accrual basis of accounting? When should revenue and expense be recognized in the accrual basis? Provide an example.
PLEASE IN YOUR OWN WORDS.
thx.
In: Accounting
What is Revenue Cycle and how does it function? Why is it important for managers to understand?
In: Finance
You are part of the board of directors of H&M based in the Philippines. Revenue is dropping in the first quarter of the year due to high production costs. Your task is to come up with a solution to lower the cost of production while simultaneously maintaining the same price point and expanding other markets all over the country
You may want to take into consideration the following theme:
- Branch Location:
- Worker compensation:
- Consumer location:
In: Economics
How can DHL get revenue from air cargo sector?
In: Operations Management
If the demand for a product is inelastic, it means that the quantity demanded of that product does not change significantly in response to changes in the product's price. In this scenario, if the price of the product increases, the total revenue earned by the seller will also increase.
In: Economics
Cost of new equipment: $200 million.
The equipment will be depreciated over 8 years on a straight-line basis to zero book value.
Proceeds from the sale of old equipment which has a book value of $15 m is 40 million,
Expensable installation cost: 0.50 million.
Estimated Revenue from the sale of electricity in the first year: $65 million and it remains the same for all 5 years;
Cost of gas: $25 million;
Operating and other expenses: $4 million;
Initial working capital expenses: $1 million;
Project’s assets estimated resale value: $65 million.
The project is subject to a tax rate of 30%,
Anticipated clean-up expense: $1.0 million.
The investment is eligible for $1.0 million investment tax credit.
The weighted average cost of capital (WACC) of the project is 5%.
Using these data,
Net initial investment outlay:
-Io – W –(1-t)E0 + [So – t(S0-B0] + Ic
Net operating cash flow:
(1-t)(R – C) + t(D)
Net salvage value:
S – t(S – B) – (1 – t)REX + W
In: Finance
Discuss threats and controls in the expenditure cycle, revenue cycle, and production cycle
In: Accounting
A production company has observed that there are changes in revenue every time it tries to manipulate the price. The concerns of management were brought to your attention needing your expertise advice on how price influences quantity and subsequently revenue. The market survey revealed that the quantity demanded of the product follows a Cobb-Douglas function as presented below:
Q"dx"= αP"x^β"+ε^u ........... of the form Q=AL^αK^β (Cobb Douglas production fuction)
Where Qdx is the quantity demanded of commodity X and Px is the price of commodity X. Further, the company observed that from January to October, the Quantity demanded at a given price level was given as in the table below.
| Month | Jan | Feb | Mar | April | May | Jun | Jul | Aug | Sep | Oct |
| Qty | 583 | 580 | 618 | 695 | 724 | 812 | 887 | 991 | 1186 | 1940 |
| Price | 61 | 54 | 50 | 43 | 38 | 36 | 28 | 23 | 19 | 10 |
As the only company’s economist, management has asked you help them to be able to predict and forecast the sales
a). Estimate the model and interpret the results (15Mks)
b). calculate the price elasticity of demand for this model (5Mks)
c). How much variations in quantity demanded are accounted for by the variations in the price of the commodity (5Mks)
In: Economics
For a perfectly competitive firm, marginal revenue is identical to
Select one:
a. a and c above
b. marginal cost at every quantity.
c. all of the above
d. average cost at every quantity.
e. price at every quantity. (wrong)
In: Economics