The Roost 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.

Requirement 1. Prepare a vertical analysis for Roost for both its income statement and balance sheet.Begin by preparing a vertical analysis for Roost

for its income statement. (Round the percent of total amounts to one decimal place, X.X, and do not enter the %. For example, enter 10.1% as 10.1.)

Roost Department Stores, Inc.
Income Statement
Year Ended December 31, 2024
	Amount	Percent of Total
Net Sales Revenue	$779,000		%
Cost of Goods Sold	526,604		%
Gross Profit	252,396		%
Operating Expenses	161,253		%
Operating Income	91,143		%
Other Expenses	5,453		%
Net Income	$85,690		%

Prepare a vertical analysis for Roostfor its balance sheet. (Round the percent of total amounts to one decimal place, X.X, and do not enter the %. For example, enter 10.1% as 10.1.)

Roost Department Stores, Inc.
Balance Sheet
December 31, 2024
	Amount	Percent of Total
Current Assets	$309,580		%
Property, Plant, and Equipment, Net	120,520		%
Intangible Assets, Net	5,520		%
Other Assets	24,380		%
Total Assets	$460,000		%
Current Liabilities	$212,980		%
Long-term Liabilities	105,800		%
Total Liabilities	318,780		%
Stockholders' Equity	141,220		%
Total Liabilities and Stockholders' Equity	$460,000		%

Requirement 2. Compare the company's profit performance and financial position with the average for the industry. Roost's gross profit percentage and profit margin ratio are both

higher than less than the same as the industry average, which indicates a(n)

comparable favorable unfavorable profit performance as compared with the industry. The company showed a slightly

higher lower investment in fixed and intangible assets than the industry average. The company's percentage of debt to total assets is

higher lower than the industry, which would generally indicate a

stronger weaker financial position than the average for the industry.

Roost Department Stores, Inc.
Balance Sheet Compared with Industry Average
December 31, 2024
		Industry
	Roost	Average
Current Assets	$309,580	70.9 %
Property, Plant, and Equipment, Net	120,520	23.6
Intangible Assets, Net	5,520	0.8
Other Assets	24,380	4.7
Total Assets	$460,000	100.0 %
Current Liabilities	$212,980	48.1 %
Long-term Liabilities	105,800	16.6
Total Liabilities	318,780	64.7
Stockholders' Equity	141,220	35.3
Total Liabilities and Stockholders' Equity	$460,000	100.0 %

Roost Department Stores, Inc.
Income Statement Compared with Industry Average
Year Ended December 31, 2024
		Industry
	Roost	Average
Net Sales Revenue	$779,000	100.0 %
Cost of Goods Sold	526,604	65.8
Gross Profit	252,396	34.2
Operating Expenses	161,253	19.7
Operating Income	91,143	14.5
Other Expenses	5,453	0.4
Net Income	$85,690	14.1 %