Learning Objective 3 P-F:15-24A Performing vertical analysis 1. Net Income 11.3% The Klein 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. KLEIN DEPARTMENT STORES, INC. Income Statement Compared with Industry Average Year Ended December 31, 2024 KLEIN DEPARTMENT STORES, INC. Balance Sheet Compared with Industry Average December 31, 2024 Net Sales Revenue Cost of Goods Sold Gross Profit Industry Klein Average $778,000 100.0% 524,372 253,628 Industry Current Assets Klein $339,000 Average 70.9% 65.8 Property, Plant, and Equipment, Net 130,000 23.6 34.2 Intangible Assets, Net 7,000 0.8 Operating Expenses 159,490 19.7 Other Assets 24,000 4.7 Operating Income 94,138 14.5 Total Assets $ 500,000 100.0% Other Expenses 6,224 0.4 Net Income $87,914 14.1% Current Liabilities $ 232,000 48.1% Long-term Liabilities 111,000 16.6 Total Liabilities 343,000 64.7 Stockholders' Equity 157,000 35.3 Total Liabilities and Stockholders' Equity $500,000 100.0% Requirements 1. Prepare a vertical analysis for Klein for both its income statement and balance sheet. 2. Compare the company's profit performance and financial position with the average for the industry. 1515