After-class Task #2 Common Size Statements 1. Create common size income statements and balance sheets for The Big Shoppe. 2. Interpret your results. The Big Shoppe Income Statement, 2009 and 2010 2009 2010 Common Size Analysis 2009 2010 Net sales $3,815,356 $2,758,535 Cost of goods sold 2.751,085 1,991,777 Gross profit $1,064,271 $766,758 Operating expenses 693,657 504,363 General & Admin. 91,664 67.901 Preopening expense 13,315 9,845 Net operating profit $265,635 $184,649 Interest expense (net) 5,807 2,634 Earnings before taxes $259,828 $182,015 Income taxes 96.400 70,061 Net income $163,428 $111.954 The Big Shoppe Balance Sheet, 2009 and 2010 2009 2010 Common Size Analysis 2009 2010 Assets Cash $137,296 $135,381 Receivables (net) 49,325 38,933 Inventory 509,022 381,452 Other 17,931 10,474 Total current assets $713,574 $566,240 Plant, prop. & equip. 963,619 568,690 Less accum depr. (84,889) (54,250) Net plant, prop. & equip $878,730 $514,440 Other assets 47,199 36,854 Total assets $1,639,503 $1,117.534 Liabilities Accounts payable Accrued liabilities Other current liabilities Total current liabilities Long-term debt Capital lease oblig Stockholders' equity Retained earnings Paid-in-capital Other Total stkhrs' equity Total liabilities & equity $235,267 $172,876 166,734 118,066 $10,706 $1,447 $412,707 $292,389 $530,774 $302,901 $12,620 $10,115 $439,770 $289,177 264,301 233,458 (20,669) (10,506) $683,402 $512,129 $1,639,503 $1,117,534