Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Data table Data table The Roost Department Stores, Inc. chief executive officer (CEO) has asked you to compare the company's profit performance and financial position
Data table Data table 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 statement and balance sheet as well as the industry average data for retailers. (Click the icon to view the income statement.) (Click the icon to view the balance sheet.) Read the requirements. Requirement 1. Prepare a vertical analysis for Roost for both its income statement and balance sheet. Begin by preparing a vertical analysis for Roost for its income statement. (Round the percent of total amounts to one decimal place, X.X, and do not enter the \%. For example, enter 10.1\% as 10.1 .) Prepare a vertical analysis for Roost for its balance sheet. (Round the percent of total amounts to one decimal place, X.X, and do not enter the \%. For example, enter 10.1\% as 10.1. ) \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{\begin{tabular}{c} Roost Department Stores, Inc. \\ Balance Sheet \\ December 31, 2024 \end{tabular}} \\ \hline \multirow[b]{2}{*}{ Current Assets } & \multicolumn{2}{|c|}{ Amount } & Percent of Total \\ \hline & $ & 297,440 & % \\ \hline Property, Plant, and Equipment, Net & & 111,760 & % \\ \hline Intangible Assets, Net & & 9,240 & % \\ \hline Other Assets & & 21,560 & % \\ \hline Total Assets & & 440,000 & % \\ \hline Current Liabilities & $ & 205,920 & % \\ \hline Long-term Liabilities & & 98,560 & % \\ \hline Total Liabilities & & 304,480 & % \\ \hline Stockholders' Equity & & 135,520 & % \\ \hline Total Liabilities and Stockholders' Equity & & 440,000 & % \\ \hline \end{tabular} 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. 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 than the industry, which would generally indicate a financial position than the average for the industry
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started