Question
The Rim 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 Rim 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.
LOADING...
(Click
the icon to view the income statement.)
LOADING...
(Click
the icon to view the balance sheet.)
Requirements
1. Prepare a vertical analysis for Rim
for both its income statement and balance sheet.
2. Compare the company's profit performance and financial position with the average for the industry.
Requirement 1. Prepare a vertical analysis for
RimRim
for both its income statement and balance sheet.
Begin by preparing a vertical analysis for
RimRim
for its income statement. (Round the percent of total amounts to one decimal place, X.X%.)
Rim Department Stores, Inc. | |||
Income Statement | |||
Year Ended December 31, 2016 | |||
| Amount | Percent of Total | |
Net Sales | $783,000 |
| % |
Cost of Goods Sold | 530,091 |
| % |
Gross Profit | 252,909 |
| % |
Operating Expenses | 162,081 |
| % |
Operating Income | 90,828 |
| % |
Other Expenses | 5,481 |
| % |
Net Income | $85,347 |
| % |
Enter any number in the edit fields and then click Check Answer.
Rim Department Stores, Inc.
Income Statement Compared with Industry Average
Year Ended December 31, 2016
Industry
Rim
Average
Net Sales
$783,000
100.0 %
Cost of Goods Sold
530,091
65.8
Gross Profit
252,909
34.2
Operating Expenses
162,081
19.7
Operating Income
90,828
14.5
Other Expenses
5,481
0.4
Net Income
$85,347
14.1 %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started