The Rim Department Stores, Inc. chief executive officer (CEO) has asked you 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.) : (Click the icon to view the balance sheet.) Read the requirements. Requirement 1. Prepare a vertical analysis for Rim for both its income statement and balance sheet. Begin by preparing a vertical analysis for Rim 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, 2018 Amount Percent of Total Net Sales Revenue 781,000 % Cost of Goods Sold 525,613 % Gross Profit % 255,387 162,448 Operating Expenses Operating Income Other Expenses 92,939 % 4,686 % $ Net Income 88,253 % Prepare a vertical analysis for Rim for its balance sheet. (Round the percent of total amounts to one decimal place, X.X%.) Rim Department Stores, Inc. Balance Sheet December 31, 2018 Amount Percent of Total Current Assets $ 310,960 % Property, Plant, and Equipment, Net 117,760 % Intangible Assets, Net 7,360 Other Assets 23,920 % Total Assets 460,000 % % $ % 214,360 105,800 % Current Liabilities Long-term Liabilities Total Liabilities Stockholders' Equity Total Liabilities and Stockholders' Equity % 320,160 139,840 % 460,000 % Amount Percent of Total Current Assets $ % 310,960 117,760 % Property, Plant, and Equipment, Net Intangible Assets, Net % 7,360 23,920 Other Assets % $ Total Assets 460,000 % Current Liabilities $ % 214,360 105,800 % Long-term Liabilities Total Liabilities % 320,160 139,840 Stockholders' Equity % $ 460,000 Total Liabilities and Stockholders' Equity % Requirement 2. Compare the company's profit performance and financial position with the average for the industry. Rim's gross profit percentage and profit margin ratio are both the industry average, which indicates a(n) profit performance as compared with the industry. than the industry, which would generally indicate a financial The company showed a slightly investment in fixed and intangible assets than the industry average. The company's percentage of debt to total assets is position than the average for the industry. Impare the company's profit performance and financial position with the averane for the industa. The cobae sivan vou the companile income statement and Data Table lance sheet.) Requirements Data Table Rim Department Stores, Inc. Balance Sheet Compared with Industry Average December 31, 2018 Industry Rim Average 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. Rim Department Stores, Inc. Income Statement Compared with Industry Average Year Ended December 31, 2018 Industry Rim Average Print Done $ 310,960 70.9 % Current Assets Property, Plant, and Equipment, Net Intangible Assets, Net 117,760 23.6 Net Sales Revenue $ 100.0 % 7,360 23,920 0.8 4.7 781,000 525,613 Other Assets Cost of Goods Sold 65.8 $ 460,000 100.0 % Total Assets Gross Profit 255,387 162,448 34.2 19.7 Operating Expenses Operating Income Current Liabilities $ 92,939 14.5 214,360 105,800 48.1 % 16.6 4,686 0.4 Long-term Liabilities Other Expenses Total Liabilities 64.7 $ 88,253 14.1 % 320,160 139,840 Net Income Stockholders' Equity 35.3 pared with the industry. 460,000 100.0 % Total Liabilities and Stockholders' Equity Print Done than the industry, which would generally indicate a financial Print Done