The McConnell Farm Supplies, 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. (Click the icon to view the income statement.) E (Click the icon to view the balance sheet.) Required 1. Prepare a vertical analysis for McConnell for both its income statement and balance sheet. 2. Compare the company's gross margin percentage (gross margin as a percent of net sales) with the average for the industry. Comment on their investment in assets and the amount of current liabilities compared to the industry information shown Requirement 1. Prepare a vertical analysis for McConnell for both its income statement and balance sheet. Begin by preparing a vertical analysis for McConnell for its income statement. (Round the percentage to the nearest tenth percent, X.X%.) McConnell Farm Supplies, Inc. Income Statement For the Year Ended December 31, 2020 Amount Percent of Total Net sales $ 782,000 % 529,414 Cost of goods sold Gross margin Operating expenses Operating income 252,586 161,092 91,494 7,820 Other expenses $ 83,674 Net income Prepare a vertical analysis for McConnell for its balance sheet. (Round the percentage to the nearest tenth percent, X.X%.) McConnell Farm Supplies, Inc. Balance Sheet December 31, 2020 Amount Percent of Total Current assets $ 291,110 % 111,800 Property, plant, and equipment Intangible assets, net 6,020 21,070 Other assets $ 430,000 Total assets % Current liabilities $ 200,380 95,460 Long-term liabilities Total liabilities 295,840 134,160 Shareholders' equity $ 430,000 Total liabilities and shareholders' equity Requirement 2. Compare the company's gross margin percentage with the average for the industry, as well as the investment in assets and the amount of current liabilities. McConnell's gross margin percentage is the industry average, which indicates profit performance as compared with the industry. investment in fixed and intangible assets than the industry average. The percentage of current liabilities is than the industry average, which would generally indicate a v financial position The company showed a slightly than the average for the industry. 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 comp Austry average data for retailers. incompetatamant POLIClick the icon to wow be balance best Balance Sheet Income Statement or McCo ss marg mpared to McConnell Farm Supplies, Inc. Balance Sheet Compared with Industry Average December 31, 2020 cal anal McConnell Farm Supplies, Inc. Income Statement Compared with Industry Average For the Year Ended December 31, 2020 McConnell Industry Farm Average alysis fol McConnell Farm Industry Average rm Sup $ 291,110 70.9% Statem Net sales $ 111,800 Current assets Property, plant, and equipment Intangible assets, Net 23.6 782,000 529,414 d Decen Amou 100.0 % 65.8 Cost of goods sold Gross margin 6,020 21,070 0.8 4.7 Other assets 78 52 252,586 161,092 34.2 19.7 $ 430,000 100.0% Total assets Operating expenses Operating income 14.5 23 18 91,494 7,820 0.4 Other expenses Current liabilities $ 200,380 95,460 48.1 % 16.6 $ 83,674 14.1% Net income Long-term liabilities Total liabilities 295,840 134,160 64.7 35.3 Shareholders' equity Print Done $ 430,000 100.0% Total liabilities and shareholders' equity IcConnell for its balance sheet. (Round the percentage to the nearest tenth perce Print Done hell Farm Supplies, Inc. Balance Sheet ecember 31, 2020
