Pool Corporation, Inc., is the world’s largest wholesale distributor of swimming pool supplies and equipment. It is a publicly traded corporation that trades on the NASDAQ exchange under the symbol POOL. It sells these products to swimming pool repair and service businesses like Penny’s Pool Service & Supply, Inc.; swimming pool builders; and retail swimming pool stores. The majority of these customers are small, family-owned businesses like Penny’s. Its trial balance and additional information adapted from a recent year ended December 31 are presented below. All numbers are in thousands.

Required:
1. Prepare a classified consolidated statement of income (with earnings per share) and consolidated balance sheet for the current year. Number of shares outstanding used in computation of earnings per share was 39,833.
2. Compute gross profit percentage and return on assets. Total assets at the beginning of the year was $1,240,871.

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1 2 3 4 5 6 Receivables, net 7 Product inventories, net 8 9 10 11 12 13 14 15 16 17 POOL CORPORATION, INC. Trial Balance At December 31, Current Year 18 19 20 21 22 Cash and cash equivalents Prepaid expenses and other current assets Property and equipment, net Intangible assets Operating lease assets Other noncurrent assets, net Accounts payable Accrued expenses and other current liabilities Current portion of long-term debt Operating lease liability, current Long-term debt Operating lease liability, noncurrent Other long-term liabilities Common stock Additional paid-in capital Retained (deficit) earnings Debit 28,583 226,539 702,274 16,172 112,246 199,634 176,689 21,129 336,674 Credit 261,963 60,813 11,745 56,325 499,662 122,010 60,568 40 485,239