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The Roost 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. (Click the icon to view the income statement.)(Click the icon to view the balance sheet.) Read the requirements Requirement 1. Prepare a vertical analysis for Roost for both its income statement and balance sheet. Begin by preparing a vertical analysis for Roost for its income statement. (Round the percent of total amounts to one decimal place, X.X%.) Roost Department Stores, Inc. Income Statement Year Ended December 31, 2018 Amount Percent of Total Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Operating Income Other Expenses Net Income $ 781,000 524,832 256,168 161,667 94,501 7,810 86,691 Prepare a vertical analysis for Roost for its balance sheet. (Round the percent of total amounts to one decimal place, .%.) Roost Department Stores, Inc. Balance Sheet December 31, 2018 Amount Percent of Total Current Assets Property, Plant, and Equipment, Net Intangible Assets, Net Other Assets Total Assets $ 298,760 111,760 8,800 20,680 440,000 Current Liabilities Long-term Liabilities Total Liabilities $ 203,720 97,240 300,960 Total Liabilities 300,960 139,040 Stockholders' Equity Total Liabilities and Stockholders' Equity40.000 Roosr's gross rott ercentage and proft margin rao are boththe industry average, which indicates alrn) peneraly hndicate inancial poiton han the average Requirement 2 Compare the company's proft performance and financial position with the average for the industry. profit performance as compared with the industry. The company showed a sighty investment i fixed and intangble assets than the industry average. The company's percentage or de t to total assets is than the dustry, which would financial position than the average for the industry Roost Department Stores, Inc. Balance Sheet Compared with Industry Average December 31, 2018 Industry Average Roost Current Assets Property, Plant, and Equipment, Net Intangible Assets, Net Other Assets Total Assets $ 298,760 111,760 8,800 20,680 440,000 70.9 % 23.6 0.8 4.7 100.0 % Current Liabilities Long-term Liabilities Total Liabilities Stockholders' Equity Total Liabilities and Stockholders' Equity 203,720 97,240 300,960 139,040 $440,000 48.1% 16.6 64.7 35.3 100.0 % Roost Department Stores, Inc. Income Statement Compared with Industry Average Year Ended December 31, 2018 Industry Average Roost Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Operating Income Other Expenses Net Income $ 781,000 524,832 256,168 161,667 94,501 7,810 86,691 100.0 % 65.8 34.2 19.7 14.5 0.4 14.1 %

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