4, Below is the common-sized statement for the calendar year for Linen and Such and Household Industry averages. Sales Cost of Goods Sold Gross Profit Selling Expense Administrative Expense Total operating Expenses Operating Income Other Revenue Other Expense Income Before Income Tax Income Tax Expense Net Income Required Linen and Such Company 100% 34.8 65.2% 13.7% 12.1 25.8% 39.4% 2.4 41.8% 1.5 40.3% 14.1 26.2% Household Industry Averages 100% 31.2 68.8% 13.9% 11.8 25.7% 43.1% 1.9 45.0% 1.1 439% 15.4 28.5% Compare Linen and Such with the industry averages and identify strengths and weaknesses that Linen and Such has in the industry, Does Linen and Such need any course correction? What does it need?

FINANCIAL ACCOUNTING
10th Edition
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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4, Below is the common-sized statement for the calendar year for Linen and Such and Household
Industry averages.
Sales
Cost of Goods Sold
Gross Profit
Selling Expense
Administrative Expense
Total operating Expenses
Operating Income
Other Revenue
Other Expense
Income Before Income Tax
Income Tax Expense
Net Income
Required
Linen and Such
Company
100%
34.8
65.2%
13.7%
12.1
25.8%
39.4%
2.4
41.8%
1.5
40.3%
14.1
26.2%
Household
Industry
Averages
100%
31.2
68.8%
13.9%
11.8
25.7%
43.1%
1.9
45.0%
1.1
439%
15.4
28.5%
Compare Linen and Such with the industry averages and identify strengths and weaknesses that
Linen and Such has in the industry, Does Linen and Such need any course correction? What does it
need?
Transcribed Image Text:4, Below is the common-sized statement for the calendar year for Linen and Such and Household Industry averages. Sales Cost of Goods Sold Gross Profit Selling Expense Administrative Expense Total operating Expenses Operating Income Other Revenue Other Expense Income Before Income Tax Income Tax Expense Net Income Required Linen and Such Company 100% 34.8 65.2% 13.7% 12.1 25.8% 39.4% 2.4 41.8% 1.5 40.3% 14.1 26.2% Household Industry Averages 100% 31.2 68.8% 13.9% 11.8 25.7% 43.1% 1.9 45.0% 1.1 439% 15.4 28.5% Compare Linen and Such with the industry averages and identify strengths and weaknesses that Linen and Such has in the industry, Does Linen and Such need any course correction? What does it need?
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