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”).
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