Russell 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.

Requirement 1. Prepare a vertical analysis for Russell for both its income statement and balance sheet.

Begin by preparing a vertical analysis for Russell for its income statement. (Round the percent of total amounts to one decimal place, X.X%.)

Russell Department Stores, Inc.
Income Statement
Year Ended December 31, 2018
	Amount	Percent of Total
Net Sales Revenue	$777,000		%
Cost of Goods Sold	524,475		%
Gross Profit	252,525		%
Operating Expenses	161,616		%
Operating Income	90,909		%
Other Expenses	7,770		%
Net Income	$83,139		%

Russell Department Stores, Inc.
Income Statement Compared with Industry Average
Year Ended December 31, 2018
		Industry
	Russell	Average
Net Sales Revenue	$777,000	100.0 %
Cost of Goods Sold	524,475	65.8
Gross Profit	252,525	34.2
Operating Expenses	161,616	19.7
Operating Income	90,909	14.5
Other Expenses	7,770	0.4
Net Income	$83,139	14.1 %

Russell Department Stores, Inc.
Balance Sheet Compared with Industry Average
December 31, 2018
		Industry
	Russell	Average
Current Assets	$323,520	70.9 %
Property, Plant, and Equipment, Net	120,960	23.6
Intangible Assets, Net	12,000	0.8
Other Assets	23,520	4.7
Total Assets	$480,000	100.0 %
Current Liabilities	$223,680	48.1 %
Long-term Liabilities	107,520	16.6
Total Liabilities	331,200	64.7
Stockholders' Equity	148,800	35.3
Total Liabilities and Stockholders' Equity	$480,000	100.0 %