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.

Roost Department Stores, Inc

Income Statement Compared with Industry Average

Year Ended December 31 2016

	Roost	Industry Average
Net Sales	$779,000	100.0%
Cost of Good Sold	526,604	65.8
Gross Profit	252,396	32.2
Operating Expenses	163,590	19.7
Operating Income	88,806	14.5
Other Expenses	5,453	0.4
Net Income	$83,353	14.1%

Roost Department Stores, Inc

Balance Sheet Compared with Industry Average

December 31 2016

	Roost	Industry Average
Current Assets	$316,780	70.9%
Fixed Assets, Net	120,320	23.6
Intangible Assets Net	7,990	0.8
Other Assets	24,910	4.7
Total Assets	$470,000	100.0%
Current Liabilities	$217,140	48.1%
Long term Liabilities	104,340	16.6
Total Liabilities	321,480	64.7
Stockholders' Equity	148,520	35.3
Total Liabilities and Stockholders' Equity	$470,000	100.0%

Requirements

1. Prepare a vertical analysis for Roost 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 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%.)

Roost Department Stores, Inc.
Income Statement
Year Ended December 31, 2016
	Amount	Percent of Total
Net Sales	$779,000		%
Cost of Goods Sold	526,604		%
Gross Profit	252,396		%
Operating Expenses	163,590		%
Operating Income	88,806		%
Other Expenses	5,453		%
Net Income	$83,353		%

Prepare a vertical analysis for Roost for its balance sheet. ?(Round the percent of total amounts to one decimal? place, X.X%.)

Roost Department Stores, Inc.
Balance Sheet
December 31, 2016
	Amount	Percent of Total
Current Assets	$316,780		%
Fixed Assets, Net	120,320		%
Intangible Assets, Net	7,990		%
Other Assets	24,910		%
Total Assets	$470,000		%
Current Liabilities	$217,140		%
Long-term Liabilities	104,340		%
Total Liabilities	321,480		%
Stockholders' Equity	148,520		%
Total Liabilities and Stockholders' Equity	$470,000		%

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 (select correct answer: higher than or

less than or the same as) the industry? average, which indicates? a(n) (select correct answer: comparable or favorable or unfavorable ) profit performance as compared with the industry. The company showed a slightly (select correct answer: higher or lower ) investment in fixed and intangible assets than the industry average. The? company's percentage of debt to total assets is (select correct answer: higher or lower) than the? industry, which would generally indicate a (select correct answer: stronger or weaker) financial position that the average for the industry.