The Specialty Department Stores, Inc., chief executive officer (CEO) has asked you to compare the company's profit performance and financial position with the average 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.

Requirement
1. Prepare a vertical analysis for Specialty for both its income statement and balancesheet.

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SPECIALTY DEPARTMENT STORES, INC. Income Statement Compared with Industry Average Year Ended December 31, 2012 Industry Specialty $ 782,000 Average 100.0% Net sales Cost of goods sold Gross profit Operating expenses Operating income 528,632 65.8 $ 253,368 34.2 163,438 19.7 $ 89,930 14.5 Other expenses 4,692 0.4 14.1% $ 85,238 Net income