Develop common sized income statements

Reference no: EM131007584

Linden Corp. has a 10% market share in its industry. Below are income state- ments ($millions) for Linden and for the industry.

	Linden	Industry
Sales	$6,000	$64,000
Cost of goods sold	3,200	33,650
Gross margin Expenses: Sales and marketing	$2,800 $430	$30,350 $3,850
Engineering	225	2,650
Finance and administration	650	4,560
Total expenses	$1,305	$11,060
EBIT	$1,495	$19,290
Interest expense	230	4,500
EBT	$1,265	$14,790
Tax	500	5,620
Net income	$765	$9,170

a. Develop common sized income statements for Linden and the industry as a whole.

b. What areas should management focus on to improve performance, and what kind of issues should be examined or looked for in each area?

Reference no: EM131007584

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