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1. Prepare a vertical analysis for both the income statement and balance sheet.
2. Write a paragraph comparing the companys performance with the industry average.
3. Compute the following ratios and comment on what the results mean when evaluating the company:

Current ratio

Gross profit percentage ratio

Debt ratio

Profit margin ratio

Learning Objective 3 to P17-31B Performing vertical analysis The Randall 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. 1. Net Income 10.9% RANDALL DEPARTMENT STORES, INC. Income Statement Compared with Industry Average Year Ended December 31, 2018 Industry Average 100.0% Randall $ 783,000 527,742 255,258 163,647 RANDALL DEPARTMENT STORES, INC. Balance Sheet Compared with Industry Average December 31, 2018 Industry Randall Average Current Assets $ 310,040 70.9% Property, Plant, and Equipment, Net 119,600 23.6 Intangible Assets, Net 7,360 Other Assets 23,000 4.7 Total Assets $ 460,000 100.0% Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Operating Income Other Expenses Net Income 65.8 0.8 34.2 19.7 14.5 91,611 6,264 $ 85,347 0.4 14.1% 48.1% 16.6 Current Liabilities Long-term Liabilities Total Liabilities Stockholders' Equity Total Liabilities and Stockholders' Equity $ 210,680 103,960 314,640 145,360 S460,000 64.7 35.3 100.0%

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