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

RimRim

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	100.0	%
Cost of Goods Sold	530,091	67.7	%
Gross Profit	252,909	32.3	%
Operating Expenses	162,081	20.7	%
Operating Income	90,828	11.6	%
Other Expenses	5,481	0.7	%
Net Income	$85,347	10.9	%

Prepare a vertical analysis for

RimRim

for its balance sheet. (Round the percent of total amounts to one decimal place, X.X%.)

Rim Department Stores, Inc.
Balance Sheet
December 31, 2016
	Amount	Percent of Total
Current Assets	$311,880		%
Fixed Assets, Net	117,760		%
Intangible Assets, Net	8,280		%
Other Assets	22,080		%
Total Assets	$460,000		%
Current Liabilities	$210,680		%
Long-term Liabilities	103,040		%
Total Liabilities	313,720		%
Stockholders' Equity	146,280		%
Total Liabilities and Stockholders' Equity	$460,000		%

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 %

Rim Department Stores, Inc.

Balance Sheet Compared with Industry Average

December 31, 2016

Industry

Rim

Average

Current Assets

$311,880

70.9 %

Fixed Assets, Net

117,760

23.6

Intangible Assets, Net

8,280

0.8

Other Assets

22,080

4.7

Total Assets

$460,000

100.0 %

Current Liabilities

$210,680

48.1 %

Long-term Liabilities

103,040

16.6

Total Liabilities

313,720

64.7

Stockholders' Equity

146,280

35.3

Total Liabilities and Stockholders' Equity

$460,000

100.0 %