Arlington Company Wishes to Compare Itself to a Key Competitor

question 99

Essay

Arlington Company wishes to compare itself to a key competitor, but that company is much larger in size than Arlington. Please refer to the following income statement information:
$\begin{array}{|l|r|r|}\hline&\text { Arlington Co. } & \text { Bardo } \mathrm{Co.} \\\hline \text { Revenues } & \$ 8,000 & \$ 46,000 \\\hline \text { Cost of revenues } & 3,370 & 22,000 \\\hline \text { Gross Profit } & 4,630& 24,000 \\\hline \text { Operating expenses: } & & \\\hline \text { Sales and marketing expense } & 2,100 & 3,951 \\\hline \text { General and administrative expense } & 960 & 4,98 \\\hline \text { Research and development expense } & 330 & 4,691 \\\hline \text { Total operating expenses } & \$ 3,390 & \$ 13,601 \\\hline\\\hline \text { Income before income tax } & \$ 1,240 & \$ 10,380 \\\hline \text { Income tax expense } & 260 & 2,670 \\\hline \text { Net income/(loss) } & \$ 980 & \$ 7,710 \\\hline\end{array}$

Please prepare a common-size income statement for the two companies using the following format.
(Round all amounts to the nearest tenth of a percent.)
$$\begin{array} { | l | l | l | } \hline & \text { Arlington Co. } & \text { Bardo Co. } \\\hline \text { Revenues } & & \\\hline \text { Cost of revenues } & & \\\hline \text { Gross Profit } & & \\\hline \text { Operating expenses: } & & \\\hline \text { Sales and marketing expense } & & \\\hline \text { General and administrative expense } & & \\\hline \text { Research and development expense } & & \\\hline \text { Total operating expenses } & & \\\hline & & \\\hline \text { Income before income tax } & & \\\hline \text { Income tax expense } & & \\\hline \text { Net income(loss) } & & \\\hline\end{array}$$

Understand the concept of cultural health capital, its distribution among populations, and implications on the doctor-patient relationship.

Know the financial and educational expectations and realities facing newly graduated medical students.

Analyze the factors leading to the decline in the professional dominance of doctors.

Grasp the changing landscape of medical education and propose reforms for future improvements.

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Definitions:

Exotic Species

Species that are introduced to a new area where they do not naturally occur, often leading to ecological disruptions.

Indicator Species

Organisms used as a sign or measure of the environmental conditions or changes in an ecosystem because of their sensitivity to such conditions.

Endemic Species

Species that are native to a specific geographical area and are not naturally found anywhere else.

Keystone Species

A species crucial for the stability of an ecological community, influencing numerous other organisms within the ecosystem.