The McConnell Department Stores, Inc., chief executive officer (CEO) has asked you to compare the company's profit performance and financial position with the average 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 McConnell for both its income statement and balancesheet.

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MCCONNELL DEPARTMENT STORES, INC. Income Statement Compared with Industry Average Year Ended December 31, 2012 Industry McConnell Avcrage S 778,000 Net sales 100.0% Cost of goods sold 522,816 65.8 $ 255,184 Gross profit 34.2 19.7 Operating cxpenses 161,046 $ 94,138 Operating income 14.5 Other expenses 4,668 0.4 Net income $ 89,470 14.1%