PLS READ CAREFULLY, CAN ANYONE HELP ME WITH THIS HOMEWORK PLS. THE FIRST ONE I POST WAS WRONG THE SAME QUESTION. I WILL RATE IT AND SHOW YOUR WORK PLS. THE DATA CAN BE FOUND ON THE LAST PAGE

Thomas Department Stores' chief executive officer (CEO) has asked you to compare the company's profit performance and financial position with the average 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.

Requirement 1. Prepare a common-size income statement and balance sheet for Thomas Department Stores. The first column of each statement should present

Thomas Department Stores' common-size statement, while the second column should present the industry averages. (Round your answers to two decimal places, X.XX.)

Start with preparing a common-size income statement.

Thomas Department Stores, Inc.
Common-Size Income Statement Compared to Industry Average
For the Year Ended December 31
	Thomas		Industry
	(%)		Average
Sales revenues		%	100.0	%
Less: Cost of goods sold		%	65.6	%
Gross profit		%	34.4	%
Less: Operating expenses		%	19.7	%
Operating income		%	14.7	%
Less: Interest expense		%	0.1	%
Income before income taxes		%	14.6	%
Less: Income tax expense		%	0.4	%
Net income		%	14.2	%

Now prepare a common-size balance sheet for

ThomasThomas.

(Round your answers to two decimal places, X.XX.)

Thomas Department Stores, Inc.
Common-Size Balance Sheet Compared with Industry Average
As of December 31
	Thomas		Industry
	percentage		Average
Assets
Current assets		%	70.7	%
Fixed assets, net		%	24.3	%
Intangible assets, net		%	0.6	%
Other assets		%	4.4	%
Total assets		%	100.0	%
Liabilities
Current liabilities		%	48.3	%
Long-term liabilities		%	16.6	%
Total liabilities		%	64.9	%
Stockholders' equity
Total common stockholders' equity		%	35.1	%
Total liabilities and equity		%	100.0	%

Requirement 2. For the profitability analysis, compute Thomas Department Stores' (a) ratio of gross profit to net sales, (b) ratio of operating income to net sales, and (c) ratio of net income to net sales. Compare these figures with the industry averages. Is Thomas Department Stores' profit performance better or worse than the industry average? Thomas's

common-size income statement shows that its ratios of gross profit, operating income, and net income to net sales are

better

worse

than the industry averages. Overall,

ThomasThomas's

profit performance is

better

worse

than average for the industry.

Requirement 3. For the analysis of the financial position, compute Thomas Department Stores' (a) ratio of current assets to total assets and (b) ratio of stockholders' equity to total assets. Compare these ratios with the industry averages. Is Thomas Department Stores' financial position better or worse than the industry averages Thomas's

common-size balance sheet shows that its ratio of current assets to total assets and its ratio of stockholders' equity to total assets are

better

worse

than the industry averages. Overall,

ThomasThomas's

financial position is

better

worse

than average for the industry.

Thomas Department Stores, Inc.
Income Statement Compared with Industry Average
For the Year Ended December 31
	(amounts in thousands)
	Thomas	Industry Average
Sales revenues	$778,000	100.0	%
Less: Cost of goods sold	525,150	65.6	%
Gross profit	$252,850	34.4	%
Less: Operating expenses	159,490	19.7	%
Operating income	$93,360	14.7	%
Less: Interest expense	1,282	0.1	%
Income before income taxes	$92,078	14.6	%
Less: Income tax expense	5,720	0.4	%
Net income	$86,358	14.2	%

PrintDone

Thomas Department Stores, Inc.
Balance Sheet Compared with Industry Average
As of December 31
(amounts in thousands)
	Thomas	Industry Average
Assets
Current assets	$311,420	70.7	%
Fixed assets, net	117,760	24.3	%
Intangible assets, net	6,900	0.6	%
Other assets	23,920	4.4	%
Total assets	$460,000	100.0	%
Liabilities
Current liabilities	$212,520	48.3	%
Long-term liabilities	103,040	16.6	%
Total liabilities	$315,560	64.9	%
Stockholders' equity
Total common stockholders' equity	$144,440	35.1	%
Total liabilities and equity	$460,000	100.0	%

PrintDone