P17-31B Performing vertical analysis Learning Objective 3 The Randall Department Stores, Inc. chief executive officer (CEO) has asked you to compare the company's profit performance and financial position with the averages 1. Net Income 10.9% 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. RANDALL DEPARTMENT STORES, INC. RANDALL DEPARTMENT STORES, INC. Income Statement Compared with Industry Average Balance Sheet Compared with Industry Average Year Ended December 31, 2018 December 31, 2018 Industry Industry Randall Average Randall Average Net Sales Revenue $ 783,000 100.0% Current Assets $ 310,040 70.9% Cost of Goods Sold 527,742 65.8 Property, Plant, and Equipment, Net 119,600 23.6 Gross Profit 255,258 34.2 Intangible Assets, Net 7,360 0.8 Operating Expenses 163,647 19.7 Other Assets 23,000 4.7 Operating Income 91,611 14.5 Total Assets $ 460,000 100.0% Other Expenses 6,264 0.4 Net Income $ 85,347 14.1% Current Liabilities $ 210,680 48.1% Long-term Liabilities 103,960 16.6 Total Liabilities 314,640 64.7 Stockholders' Equity 145,360 35.3 Total Liabilities and Stockholders' Equity $ 460,000 100.0%