RANDALL DEPARTMENT STORES, INC. Income Statement compared with Industry Average Year Ended December 31, 2020 Randall Industry Average Net Sales Revenue $800,000 100 % Cost of Goods Sold 627,200 67.4 Gross Profit 172,800 32.6 Operating Expenses 95,000 20.9 Operating Income 77,800 11.7 Other Expenses 8,054 0.8 Net Income $69,746 10.9 % RANDALL DEPARTMENT STORES, INC. Balance Sheet 31-Dec-20 Randall Industry Average Current Assets $300,000 68 % Property, Plant, and Equipment, Net 130,600 25.2 Intangible Assets, Net 8,400 1 Other Assets 7,500 5.8 Total Assets 446,500 100 % Current Liabilities $230,000 65 % Long-term Liabilities 95,000 17 Total Liabilities 325,000 82 Stockholders’ Equity 121,500 18 Total Liabilities and Stockholders’ Equity $446,500 100 % Please refer to the Income Statement and Balance Sheet above and perform the following. Prepare a vertical analysis for both the income statement and balance sheet. Write a paragraph comparing the company’s performance with the industry average. Compute the following ratios and comment on what the results mean when evaluating the company: Current ratio The gross profit percentage ratio Debt ratio Profit margin ratio Written assignments should conform to MLA format, making sure to cite the associated reading/resource. Click the Assignment link above to upload the completed assignment, which must be a Word document. Please include your last name in the filename (example: ‘unit5as2_smith’).
