P03-35B Performing vertical analysis The Specialty Department Stores, Inc. chief executive officer (CEO) has asked you to compare the company's profit performance and financial position with the aver- ages 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. SPECIALTY DEPARTMENT STORES, INC. Income Statement Compared with Industry Average Year Ended December 31, 2022 Learning Objective 2 1. Net Income 10.9% Industry Specialty Average Net Sales $ 782,000 100.0% Cost of Goods Sold 528,632 65.8 Gross Proit 253,368 34.2 Operating Expenses 163,438 19.7 Operating Income 89,930 14.5 Other Expenses 4,692 0.4 Net Income $ 85,238 14.1%