Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

he Ambrose Department Stores, Inc. chief executive officer (CEO) has asked you to compare the company's profit performance and fi he company's income statement and

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
he Ambrose Department Stores, Inc. chief executive officer (CEO) has asked you to compare the company's profit performance and fi he 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. Ambrose Department Stores, Inc Common-Size Income Statement Year Ended December 31, 2018 Ambrose Industry Average 100.01% 100.0 % 65.8 34.2 % 19.7 14.5 % 0.4 14.1 Net Sales Revenue Cost of Goods Sold Gross Profit 67.6 32.4% 20.6 11.81% Operating Income Other Expenses Net Income Prepare a common-size balance sheet for Ambrose. (Round your answers to one decimal place, XX%.) 0.9 10.9 % Read the requirements Common-Size Balance Sheet December 31, 2018 Ambrose Industry Average 67.31% 25.21 % 2.2% 70.9 % 23.6 % 0.8 % 4.7 % 100.0% Current Assets Property, Plant, and Equipitent, Net Intangible Assets, Net Other Assets Total Assets 100.01% Current Liabilities Long-term Liabilities Total Liabilities Stockholders' Equity Total Liabilities and Stockholders' Equity 46,01 % 224 | 96 68.41% 31.6 % 48.1 % 16.6 % 64.7 % 35.3 % 100.0% Data Table e companv's profit performance and financial position with the averages for Data Table Balance Sheet Compared with Industry Average December 31, 2018 Industry Ambrose Average Ambrose Department Stores, Inc Income Statement Compared with Industry Average Year Ended December 31, 2018 Is Current Assets Property, Plant, and Equipment, Net Intangible Assets, Net Other Assets Total Assets 323,040 70.9% 120,960 23.6 0.8 4.7 10,560 25,440 Industry Ambrose Average Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Operating Income Other Expenses Net Income 781,000 527,956 253,044 160,886 92,158 7,029 $ 85,129 100.0 % 65.8 34.2 19.7 14.5 0.4 14.1% 480,000 100.0 % Current Liabilities Long-term Liabilities Total Liabilities Stockholders Equity 220,800 48.1% 16.6 328,320 64.7 35.3 107,520 151,680 Total Liabilities and Stockholders' Equity S 40,000-100.0% Print Done Print Done the Ambrose Department Stores, Inc. chief executive officer (CEO) has asked you to compare the company's profit performance and francial posiion with the averages for the industry, The CEO has given you the company's income statement and balance sheet as wel as the industry average data for retailers EEB(Cick the loon to view the income statement) EE (Click the icon to view the balanoe sheet) Read the recuirements Requirement 2. For the protablity analyis, compute Ambrose's (a) gross profe ercentage and (b) proft margin ratio Compare t Ambroswe's or worse than the industry average? (a) Compute Ambrose's gross proit percentage. (Round the gross profit percentage to one decimal place,x.xx.) Gross proft percentage (b) Computo Ambrose's profit m argin ratio.Rond the profit margin ratio to one deonai place, XX%) Profit margin rato Compare these fgures with the industry averages. Is Ambrose's proft performance better or worse than he When comparing the gross profit percentage and the proft margin ratio with the industry averages, Ambros's profe perfonance han the Is Ambrose's proft gerformance better or worse than the industry average? s t industry averages for ndaty averages Assume the anunt ratio ndustry average Requirement 3. For the analysis of financial position, compute Ambrose's (a) current ratio and (b) debt to equity raio. Compare these ratios with the is 1.83. Is Ambrose's financial position better or worse the ratio to two decimal places, X.XX.) than the industy averages? s 1.47, and the debe to equity industry average i (a) Compute Ambrose's current ratio. (Round t Click the icon to view the income statement.) EEB (Click the icon to view the balance sheet.) Read the requirements Compare these figures with the industry averages. Is Ambrose's profit performance better or worse than the industry average? When comparing the gross profit percentage and the profit margin ratio with the industry averages, Ambrose's profft performance isthan the industry averages fr Requirement 3. For the analysis of financial position, compute Ambrose's (a) current ratio and (b) debt to equity ratio Compare these ratios with the industry averages. Assume the current ratio industry average is 1.47, and the debt to equity industry average is 1.83. Is Ambrose's financial position better or worse than the industry averages? (a) Compute Ambrose's current ratio. (Round the ratio to two decimal places, X.XX.) Current ratio (b) Compute Ambrose's debt to equity ratio. (Round the ratio to two decimal places, X.XXX.) Debt to equltly ratio Compare these ratios with the industry averages. Assume the current ratio industry average is 147 and the debt to equity industry average is 1.83. Is Ambrose's fnancial position better or worse than the ndustry averages? Ambrose's current ratio is the industry average. The debt to equity ratio is the industry average Choose from any list or enter any number in the input fields and then continue to the next

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Environmental Health And Safety Audits

Authors: Lawrence B. Cahill

8th Edition

0865878250, 978-0865878259

More Books

Students also viewed these Accounting questions