P17-24A Performing vertical analysis Learning Objective 3 The Klein 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 11.3% KLEIN DEPARTMENT STORES, INC. Income Statement Compared with Industry Average Year Ended December 31, 2018 KLEIN DEPARTMENT STORES, INC. Balance Sheet Compared with Industry Average December 31, 2018 Industry Average Industry Average Klein Klein $ 778,000 Net Sales Revenue $ 339,000 100.0% Current Assets 70.9% Cost of Goods Sold 524,372 65.8 Property, Plant, and Equipment, Net 130,000 23.6 Gross Profit 253,628 34.2 Intangible Assets, Net 0.8 7,000 Operating Expenses 159,490 19.7 Other Assets 24,000 4.7 Operating Income 94,138 14.5 $ 500,000 Total Assets 100.0% Other Expenses 6,224 0.4 S 87,914 $ 232,000 Net Income 14.1% Current Liabilities 48.1% 16.6 Long-term Liabilities 111,000 Total Liabilities 343,000 64.7 Stockholders' Equity 157,000 35.3 Total Liabilities and Stockholders' Equity 5 500,000 100.0% Financial Statement Analysis 945 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