. Prepare a common-size income statement and balance sheet for

Rost

Department Stores. The first column of each statement should present

Rost

Department Stores' common-size statement, while the second column should present the industry averages. (Round your answers to two decimal places, X.XX.)

Department Stores common-size statement, while the second column should present the industry averages. (Round your answers to two decimal places, X.XX.) Start with preparing a common-size income statement. Rost Department Stores, Inc. Common-Size Income Statement Compared to Industry Average For the Year Ended December 31 Industry Rost (%) Average Sales revenues % 100.0% 65.5% Less: Cost of goods sold % Gross profit % 34.5% % 19.5% Less: Operating expenses Operating income % 15.0% % 0.5% Less: Interest expense Income before income taxes % 14.5% Less: Income tax expense 0.7% % 13.8% Net income % 1 1 Rost Department Stores, Inc. Balance Sheet Compared with Industry Average Rost Department Stores, Inc. Income Statement Compared with Industry Average 2 A w N As of December 31 3 For the Year Ended December 31 (amounts in thousands) 4 5 Rost Industry Average 5 (amounts in thousands) Industry Rost Average $ 777,000 100.0% 6 Assets 6 Sales revenues 7 Current assets $ 324,480 71.0% 525,252 65.5% 8 Fixed assets, net 124,800 7 Less: Cost of goods sold 24.0% $ 7,680 0.6% 9 Intangible assets, net 8 Gross profit 251.748 34.5% 10 Other assets 23,040 4.4% 9 Less: Operating expenses 159,285 19.5% 11 Total assets $ 480,000 100.0% 10 Operating income $ 15.0% 92,463 1,554 12 Liabilities 0.5% 11 Less: Interest expense 12 Income before income taxes $ 13 Current liabilities $ 222,720 48.0% 90,909 14.5% 14 Long-term liabilities 105,600 16.6% 13 Less: Income tax expense 3,885 0.7% $ 328,320 64.6% 14 Net income $ 87,024 13.8% 15 Total liabilities 16 Stockholders' equity 17 Total common stockholders' equity $ 151,680 35.4% Print Done Done 18 Total liabilities and equity $ 480,000 100.0%