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.

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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		%

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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 %