Answer Happy

The Roost Department Stores, Inc. chief executive officer (CEO) has asked you to compare the company's profit performance and financial position with the averages for the industry. The CEO has given you the company's income statem balance sheet as well as the industry average data for retailers. CEO Cheile besiminimai bine х X Data table Data table - X Roost Department Stores, Inc. Income Statement Compared with Industry Average Year Ended December 31, 2018 Industry Average Roost Roost Department Stores, Inc. Balance Sheet Compared with Industry Average December 31, 2018 Industry Roost Average Current Assets 5 304,650 70.9% Property, Plant, and Equipment, Net 116,100 23.6 Intangible Assets, Net 6,750 0.8 Other Assets 22,500 $ 450,000 Total Assets 100.0 % Net Sales Revenue $ 100.0 % 776,000 525,352 65.8 Cost of Goods Sold Gross Profit 34.2 250,648 158,304 4.7 19.7 Operating Expenses Operating Income Other Expenses 92,344 14.5 4,656 0.4 $ 87,688 14.1 % Current Liabilities $ 206,100 Net Income 48.1 % 16.6 Long-term Llabilities 101,700 Total Liabilities 307,800 64.7 142,200 35.3 ( Print Done Stockholders' Equity ' Total Liabilities and Stockholders' Equity $ 450,000 100.0 %

Income Statement Year Ended December 31, 2018 Amount Percent of Total Net Sales Revenue $ % 776,000 525,352 Cost of Goods Sold % Gross Profit % 250,648 158,304 % Operating Expenses Operating Income 92,344 % Other Expenses 4,656 % $ 87,688 Net Income % Prepare a vertical analysis for Roost for its balance sheet. (Round the percent of total amounts to one decimal place, X.X%.) Roost Department Stores, Inc.

Amount Percent of Total Current Assets 304,650 % 116,100 % Property, Plant, and Equipment, Net Intangible Assets, Net % 6,750 22,500 Other Assets % $ 450,000 Total Assets % Current Liabilities $ % 206,100 101,700 Long-term Liabilities % Total Liabilities % 307,800 142,200 Stockholders' Equity % $ 450,000 Total Liabilities and Stockholders' Equity % Requirement 2. Compare the company's profit performance and financial position with the average for the industry. Roost's gross profit percentage and profit margin ratio are both the industry average, which indicates a(n) profit performance as compared with the industry. than the industry, which would generally indicate a financial The company showed a slightly investment in fixed and intangible assets than the industry average. The company's percentage of debt to total assets is position than the average for the industry.