The Specialty Department Stores, Inc. chief executive officer (CEO) has asked you to compare the companys profit

The Specialty 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 Specialty for both its income statement and balance sheet.
2. Compare the company’s profit performance and financial position with the average for theindustry.

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SPECIALTY DEPARTMENT STORES, INC. Income Statement Compared with Industry Average Year Ended December 31, 2014 Industry Average 100.0% 65.8 Net Sales Cost of Goods Sold Gross Profit Operating Expenses Operating Income Other Expenses Net Income Specialty 782,000 528,632 253,368 163,438 89,930 4,692 S 85,238 34.2 19.7 14.5 0.4 14.1% SPECIALTY DEPARTMENT STORES, INC. Balance Sheet Compared with Industry Average December 31, 2014 Industry Specialty Average 70.9% Current Assets Fixed Assets, Net Intangible Assets, Net Other Assets Total Assets 303,750 117,000 5,850 23,400 450,000 23.6 0.8 100.0% Current Liabilities Long-term Liabilities Total Liabilities Stockholders' Equity Total Liabilities and Stockholders' Equity $ 208,800 102,600 311,400 138,600 $450,000 48.1 % 16.6 64.7 35.3 100.0%