The president of Mackey Car Parts, Inc. has asked you to compare the companys profit performance and
Question:
The president of Mackey Car Parts, Inc. has asked you to compare the company’s profit performance and financial position with the averages for the industry. The accounting office has given you the company’s income statement and balance sheet, as well as the industry average data for competitors:
Required
1. Prepare a vertical analysis for Mackey for both its income statement and balance sheet. Round all answers to one decimal place.
2. Compare the company’s gross margin percentage (gross margin as a percent of net sales) with the average for the industry. Comment on their investment in assets compared to the industry information shown.
Step by Step Answer:
Horngrens Accounting
ISBN: 9780135359785
11th Canadian Edition Volume 2
Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann Johnston, Peter R. Norwood