Revenue and expense data for the current calendar year for Horizon Publishing Company and

 

                                                     for the publishing industry are as follows. The Horizon Publishing Company data are expressed

in dollars. The publishing industry averages are expressed in   percentages.

 

Horizon         Publishing

Publishing        Industry

 

  Sales $1,414,000 101.0%   Sales  returns  and  allowances 14,000 1.0   Cost  of  goods  sold 504,000 40.0   Selling  expenses 574,000 39.0   Administrative  expenses 154,000 10.5   Other  income 16,800 1.2   Other  expense 23,800 1.7   Income  tax  expense 56,000 4.0   Â

Company          Average

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

a.        Prepare a common-size income statement comparing the results of operations for Horizon Publishing Company with the industry average. Round to one decimal place.

b.       As far as the data permit, comment on significant relationships revealed by the comparisons.