The McConnell Department Stores, Inc. chief executive officer (CEO) has asked you to compare the companys profit
Question:
The McConnell 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 statement and balance sheet, as well as the industry average data for retailers.
Requirements
1. Prepare a vertical analysis for McConnell for both its income statement and balance sheet.
2. Compare the company’s profit performance and financial position with the average for theindustry.
Transcribed Image Text:
MCCONNELL DEPARTMENT STORES, INC. Income Statement Compared with Industry Average Year Ended December 31, 2014 Industry McConnellArage $778,000 100.0% Net Sales Cost of Goods Sold Gross Profit Operating Expenses Operating Income Other Expenses Net Income 161,046 94,138 4,668 $ 89,470 522816 65.6 255,184 34.2 19.7 14.5 0.4 14.1% MCCONNELL DEPARTMENT STORES, INC. Balance Sheet Compared with Industry Average December 31, 2014 Industry McConnel Average Curent Assets Fixed Assets, Net Intangible Assets, Net Other Assets Total Assets 325,440 120,960 8,640 24,960 480,000 70.9% 23.6 0.8 100.0% Current Liabilities Long-term Liabilities Total Liabilities Stockholders' Equity Total Liabilities and Stockholders' Equity 222,720 48.1% 107,520 330,240 149,760 16.6 64.7 35.3 100.0% S 480,000
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Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133255584
4th Edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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