The McConnell Department Stores, Inc. chief executive officer (CEO) has asked you to compare the
rubyCpaMbaThe McConnell Department Stores, Inc. chief executive officer (CEO) has asked you to compare the company’s profit performance and financial position with the averages 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.
MCCONNEL DEPARTMENT STORES, INC.
Income Statement Compared with Industry Average
Year Ended December 31, 2014
McConnell Industry Average
Net Sales $777,000 100.0%
Cost of Goods Sold 522,816 65.8
Gross Profit 255,184 34.2
Operating Expenses 161,046 19.7
Operating Income 94,138 14.5
Other Expenses 4,668 0.4
Net Income $ 89,470 14.1 %
MCCONNELL DEPARTMENT STORES, INC.
Balance Sheet Compared with Industry Average
December 31, 20144
McConnell Industry Average
Current Assets $ 325,440 70.9%
Fixed Assets, Net 120,960 23.6
Intangible Assets, Net 8,640 0.8
Other Assets 24,960 4.7
Total Assets $ 480,000 14.1%
Current Liabilities $ 222,720 48.1%
Long-term Liabilities 107,520 16.6
Total Liabilities 330,240 64.7
Stockholders’ Equity 149,760 35.3
Total Liabilities and
Stockholders’ Equity $ 480,000 100.0%
Required:
Prepare a vertical analysis for McConnell for both its income statement and balance sheet.
12 years ago
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mcconnell_department_stores.xlsx
