The Russell 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.

Requirements
1. Prepare a vertical analysis for Russell for both its income statement and balance sheet.
2. Compare the company€™s profit performance and financial position with the average for the industry.

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RUSSELL DEPARTMENT STORES, INC. Income Statement Compared with Industry Average Year Ended December 31, 2016 RUSSELL DEPARTMENT STORES, INC. Balance Sheet Compared with Industry Average December 31, 2016 Industry Industry Russell 323,520 124,800 8,160 23,520 480,000 Russell Net Sales Cost of Goods Sold Gross Profit Operating Expenses Operating Income Other Expenses Net Income 80,000 528,060 251,940 159,900 92,040 7,020 85,020 Average 100.0% 65.8 34.2 19.7 14.5 Current Assets Fixed Assets, Net Intangible Assets, Net Other Assets Total Assets Average 70.9% 23.6 0.8 4.7 100.0% 14.1% Current Liabilities Long-term Liabilities Total Liabilities Stockholders' Equity Total Liabilities and Stockholders' Equity S 221,760 108,480 330,240 149,760 S 480,000 48.1% 16.6 64.7 35.3 100.0%