Rost Department Stores chief executive officer (CEO) has asked you to compare the company's profit perfomance and financ

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Rost Department Stores chief executive officer (CEO) has asked you to compare the company's profit perfomance and financial position with the average for the industry. The CEO has given you the company's income statement and balance sheet, as well as the industry average data for retailers (Click the icon to view the income statement) (Click the i view the balance sheet) Requirement 1. Prepare a common size income statement and balance sheet for Rost Department Stores. The first column of each statement should present Rost Department Stores common size statement, while the second on shou present the industry averages (Hound your answers to two decimal places, XXX) Start with preparing a common size income statement Rost Department Stores, Inc. Comman-Size Income Statement Compared to industry Average For the Year Ended December 31 Industry Roat (16) Average 100.0% Sales revenues 65.6% Lass: Cost of goods sold 34.4% Gross profit 15.0% Less: Operating expenses 14.8% Operating income 0.5% Less: Interest expense 14:35 Income before income taxes 0.4% Less: Incame tas expense Net income Now prepare a common-sine balance sheet for Rost (Nound your answers to two deal places XXXX)
Now prepare a common-size balance sheet for Rost. (Round your answers to two decimal places, XXX) Rost Department Stores, Inc. Common-Size Balance Sheet Compared with Industry Average As of December 31 Industry Rost (%) Average Assets Current assets Fixed assets, net Intangible assets, net Other assets Total assets Current liabilities Long-term liabilities Total liabilities Stockholders' equity Total common stockholders' equity Total liabilities and equity Liabilities % % % % % % % 70.8% 24.1% 0.7% 4.4% 100.0% 47.9% 16.6% 64.5% 35.5% 100.0%
Intangible assets, not Other assets Total assets Current liabilities 47.9% 16.0% Long-term liabilities Total Habilities 64.5% Stockholders' equity 35.5% Total common stockholders' equity 100.0% Total liabilities and equity Requirement 2. For the profitability analysis, compute Rost Department Stores (a) ratio of gross proft to eas, Oratio of operating income to sales, and (c) ratio of nat income to sales Compare these gume with the inay vergess Department Stores' pruft performance better or worse than the industry average for the int Rost's common site income statement shows that its ratios of gross proft, operating income, and net income to s than the industry avenges Over Roats propean Requirement 3. For the analysis of financial position, compute Rost Department Store (a) ratio of curent assets to total assets and rano of stockholders equity to totales Curpare these tice with the nustygst Department Stores financiar position beter or worse than the industry averages? than average for the than the industry averages Ovenil Mars that peo Rost's common-size balance sheet shows that a ratio of curent assets to total assets and in rase of stockholders equity to total asses industry Liabilities 0.7% 4.4% 100.0%
Data table A B C 1 Rost Department Stores, Inc. 2 Income Statement Compared with Industry Average 3 For the Year Ended December 31 4 (amounts in thousands) Industry Rost Average 5 6 Sales revenues $ 7 Less: Cost of goods sold 8 Gross profit $ 9 Less: Operating expenses 10 Operating income $ 11 Less: Interest expense 12 Income before income taxes $ 13 Less: Income tax expense 14 Net income Print 782,000 526,286 255,714 164,220 91,494 1,173 90,321 5,083 $ 85,238 Done 100.0% 65.6% 34.4% 19.6% 14.8% 0.5% 14.3% 0.4% 13.9% — X
ve Data table 1 2 3 4 5 Rost Department Stores, Inc. Balance Sheet Compared with Industry Average As of December 31 (amounts in thousands) 6 7 Current assets 8 Assets Fixed assets, net Intangible assets, net 9 10 Other assets 11 Total assets 12 13 Current liabilities. 14 Long-term liabilities 15 Total liabilities 16 Stockholders' equity 17 Total common stockholders' equity 18 Total liabilities and equity Print Liabilities $ Rost 312,340 117,760 5,980 23,920 460,000 $ 213,440 104,880 $ 318,320 $ 141,680 $ 460,000 Done GA Industry Average 70.8% 24.1% 0.7% 4.4% 100.0% 47.9% 16.6% 64.5% 35.5% 100.0% - X me
m O c. to er 3 。) - X Requirements 1. Prepare a common-size income statement and balance sheet for Rost Department Stores. The first column of each statement should present Rost Department Stores' common-size statement, while the second column should present the industry averages. 2. For the profitability analysis, compute Rost Department Stores' (a) ratio of gross profit to sales, (b) ratio of operating income to sales, and (c) ratio of net income to sales. Compare these figures with the industry averages. Is Rost Department Stores' profit performance better or worse than the industry average? 3. For the analysis of financial position, compute Rost Department Stores' (a) ratio of current assets to total assets and (b) ratio of stockholders' equity to total assets. Compare these ratios with the industry averages. Is Rost Department Stores' financial position better or worse than the industry averages? Print Done 14.3%