Accounting exercises
Account_tutor
hho9e_p15_29b_eip_stud.xlsxP15-29B
| Accounting, 9e | ||||||
| P15-29B | Vertical analysis | |||||
| LO 2 [20-30 minutes] | ||||||
| Students please fill-in areas that are shaded | ||||||
| Student Name | ||||||
| Course Name | ||||||
| Student ID: | ||||||
| Date: | ||||||
| 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. | ||||||
| SPECIALITY DEPARTMENT STORES, INC. | ||||||
| Income Statement Compared with Industry Average | ||||||
| Year Ended December 31, 2012 | ||||||
| Speciality | Industry Average | |||||
| Net sales | $ 782,000 | 100.0% | ||||
| Cost of goods sold | 528,632 | 65.8% | ||||
| Gross profit | $ 253,368 | 34.2% | ||||
| Operating expenses | 163,438 | 19.7% | ||||
| Operating income | 89,930 | 14.5% | ||||
| Other expenses | 4,692 | 0.4% | ||||
| Net income | $ 85,238 | 14.1% | ||||
| SPECIALITY DEPARTMENT STORES, INC. | ||||||
| Balance Sheet Compared with Industry Average | ||||||
| December 31, 2012 | ||||||
| Specialty | Industry Average | |||||
| Current assets | $ 303,750 | 70.9% | ||||
| Fixed assets, net | 117,000 | 23.6% | ||||
| Intangible assets, net | 5,850 | 0.8% | ||||
| Other assets | 23,400 | 4.7% | ||||
| Total assets | $ 450,000 | 100.0% | ||||
| Current liabilities | $ 208,800 | 48.1% | ||||
| Long-term liabilities | 102,600 | 16.6% | ||||
| Stockholders’ equity | 138,600 | 35.3% | ||||
| Total liabilities and stockholders’ equity | $ 450,000 | 100.0% | ||||
| Requirements | ||||||
| 1. | Prepare a vertical analysis for Specialty for both its income statement and balance | |||||
| sheet. | ||||||
| Test Your Knowledge | ||||||
| P15-29B | ||||||
| Req. 1 | ||||||
| SPECIALITY DEPARTMENT STORES, INC. | ||||||
| Income Statement | ||||||
| Year Ended December 31, 2012 | ||||||
| Amount | Percent of Total | |||||
| Net sales revenue | $ 782,000 | 100.0% | ||||
| Cost of goods sold | 528,632 | 67.6% | ||||
| Gross profit | $ 253,368 | 32.4% | ||||
| Operating expenses | 163,438 | 20.9% | ||||
| Operating income | 89,930 | 11.5% | ||||
| Other expenses | 4,692 | 0.6% | ||||
| Net income | $ 85,238 | 10.9% | ||||
| MCCONNELL DEPARTMENT STORES, INC. | ||||||
| Balance Sheet | ||||||
| December 31, 2012 | ||||||
| McConnell | Industry Average | |||||
| Current assets | $ 303,750 | 67.5% | ||||
| Fixed assets, net | 117,000 | 26.0% | ||||
| Intangible assets, net | 5,850 | 1.3% | ||||
| Other assets | 23,400 | 5.2% | ||||
| Total assets | $ 450,000 | 100.0% | ||||
| Current liabilities | $ 208,800 | 46.4% | ||||
| Long-term liabilities | 102,600 | 22.8% | ||||
| Stockholders’ equity | 138,600 | 30.8% | ||||
| Total liabilities and stockholders’ equity | $ 450,000 | 100.0% | ||||
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