24A

Learning Objective 3 P17-24A Performing vertical analysis The Klein Department Stores, Inc. chief executive officer (CEO) has asked compare the company's profit performance and financial position with the for the industry. The CEO has given you the company's income statement sheet as well as the industry average data for retailers. has asked you to with the averages tatement and balance 1. Net Income 11.3% KLEIN DEPARTMENT STORES, INC. Balance Sheet Compared with Industry Average December 31, 2018 Industry Average KLEIN DEPARTMENT STORES, INC. Income Statement Compared with Industry Average Year Ended December 31, 2018 Industry Klein Average Net Sales Revenue $ 778,000 100.0% Cost of Goods Sold 524,372 65.8 Gross Profit 253,628 34.2 Operating Expenses 159,490 19.7 Operating Income 94,138 Other Expenses 6,224 Net Income $ 87,914 14.1% 70.9% Klein $ 339,000 130,000 7,000 24,000 $ 500,000 Current Assets Property, Plant, and Equipment, Net Intangible Assets, Net Other Assets Total Assets 23.6 0.8 100.0% 48.1% 16.6 Current Liabilities Long-term Liabilities Total Liabilities Stockholders' Equity Total Liabilities and Stockholders' Equity $ 232,000 111,000 343,000 157,000 $500,000 35.3 100.0% Requirements 1. Prepare a vertical analysis for Klein for both its income statement and balance sheet, 2. Compare the company's profit performance and financial position with the average for the industry