The Western Farm Supplies Inc. chief executive officer ( CEO ) has asked you to compare the
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Question:
The Western Farm Supplies Inc. chief executive officer CEO has asked you to compare the companys profit performance and financial position with the averages for the industry. The CEO has given you the companys income statement and balance sheet, as well as the industry average data for retailers:
WESTERN FARM SUPPLIES INC
income statement compared with industry average
for the year ended dec
Western Farm Industry Average
Net sales $
cost of goods sold $
Gross margin $
Operating expenses $
Operating income $
Other expenses $
Net income $
WESTERN FARM SUPPLIES INC
Balance sheet compared with industry average
for the year ended dec
Western Farm Industry Average
Current assets $
Property, plants, and equipment $
Intangible assets,net $
Other assets $
Total assets $
Current liabilities $
Long term liabilities $
Total liabilities $
Shareholders equity $
Total liabilities and shareholdes equity $
Required
Prepare a vertical analysis for Western for both its income statement and balance sheet. Round all answers to one decimal place.
Compare the companys gross margin percentage with the average for the industry. Comment on their investment in assets and the amount of current liabilities compared to the industry information shown.
Related Book For
Horngrens Accounting
ISBN: 978-0133855388
10th Canadian edition Volume 2
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood
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