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KLEIN DEPARTMENT STORES, INC. Income Statement Compared with Industry Average Year Ended December 31, 2018 KLEIN DEPARTMENT STORES, INC. Balance Sheet Compared with Industry Average December 31, 2018 Industry Average 100.0% Industry Average Klein Klein Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Operating Income Other Expenses Net Income $ 778,000 Current Assets $ 339,000 70.9% 524,372 65.8 Property, Plant, and Equipment, Net 130,000 23.6 253,628 34.2 Intangible Assets, Net 7,000 0.8 159,490 19.7 Other Assets 24,000 4.7 94, 138 14.5 Total Assets $ 500,000 100.0% 6,224 0.4 S 87,914 14.1% Current Liabilitie. $ 232,000 48.1% Long-term Liabilities 111,000 16.6 Total Liabilities 343,000 64.7 Stockholders' Equlty 157,000 35.3 Total Liabilities and Stockholders' Equity $ 500,000 100.0%

KLEIN DEPARTMENT STORES, INC. Income Statement Compared with Industry Average Year Ended December 31, 2018 KLEIN DEPARTMENT STORES, INC. Balance Sheet Compared with Industry Average December 31, 2018 Industry Average 100.0% Industry Average Klein Klein Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Operating Income Other Expenses Net Income $ 778,000 Current Assets $ 339,000 70.9% 524,372 65.8 Property, Plant, and Equipment, Net 130,000 23.6 253,628 34.2 Intangible Assets, Net 7,000 0.8 159,490 19.7 Other Assets 24,000 4.7 94, 138 14.5 Total Assets $ 500,000 100.0% 6,224 0.4 S 87,914 14.1% Current Liabilitie. $ 232,000 48.1% Long-term Liabilities 111,000 16.6 Total Liabilities 343,000 64.7 Stockholders' Equlty 157,000 35.3 Total Liabilities and Stockholders' Equity $ 500,000 100.0%

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter5: Inventories And Cost Of Goods Sold
Section: Chapter Questions
Problem 5.9E: Working Backward: Gross Profit Ratio Acmes gross profit ratio increased by 20% over the prior year....
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Performing vertical analysis

The Klein 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.

Requirements

  1. Prepare a vertical analysis for Klein for both its income statement and balance sheet.
  2. Compare the company’s profit performance and financial position with the average for the industry.

 

KLEIN DEPARTMENT STORES, INC. Income Statement Compared with Industry Average Year Ended December 31, 2018 KLEIN DEPARTMENT STORES, INC. Balance Sheet Compared with Industry Average December 31, 2018 Industry Average 100.0% Industry Average Klein Klein Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Operating Income Other Expenses Net Income $ 778,000 Current Assets $ 339,000 70.9% 524,372 65.8 Property, Plant, and Equipment, Net 130,000 23.6 253,628 34.2 Intangible Assets, Net 7,000 0.8 159,490 19.7 Other Assets 24,000 4.7 94, 138 14.5 Total Assets $ 500,000 100.0% 6,224 0.4 S 87,914 14.1% Current Liabilitie. $ 232,000 48.1% Long-term Liabilities 111,000 16.6 Total Liabilities 343,000 64.7 Stockholders' Equlty 157,000 35.3 Total Liabilities and Stockholders' Equity $ 500,000 100.0%
Transcribed Image Text:KLEIN DEPARTMENT STORES, INC. Income Statement Compared with Industry Average Year Ended December 31, 2018 KLEIN DEPARTMENT STORES, INC. Balance Sheet Compared with Industry Average December 31, 2018 Industry Average 100.0% Industry Average Klein Klein Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Operating Income Other Expenses Net Income $ 778,000 Current Assets $ 339,000 70.9% 524,372 65.8 Property, Plant, and Equipment, Net 130,000 23.6 253,628 34.2 Intangible Assets, Net 7,000 0.8 159,490 19.7 Other Assets 24,000 4.7 94, 138 14.5 Total Assets $ 500,000 100.0% 6,224 0.4 S 87,914 14.1% Current Liabilitie. $ 232,000 48.1% Long-term Liabilities 111,000 16.6 Total Liabilities 343,000 64.7 Stockholders' Equlty 157,000 35.3 Total Liabilities and Stockholders' Equity $ 500,000 100.0%
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