Top managers of CC Oliver Products, Inc., have asked for your help in comparing the company€™s profit performance and financial position with the average for the industry. The accountant has given you the company€™s income statement and balance sheet and also the following data for the industry:

Requirements
1. Prepare a common-size income statement and balance sheet for CC Oliver Products. The first column of each statement should present CC Oliver Products€™ common-size statement, and the second column should show the industry averages.
2. For the profitability analysis, compare CC Oliver Products€™
(a) Ratio of gross profit to net sales,
(b) Ratio of operating income to net sales,
(c) Ratio of net income to net sales with the industry averages. Is CC Oliver Products€™ profit performance better or worse than the average for the industry?
3. For the analysis of financial position, compute CC Oliver Products€™
(a) Ratios of current assets and current liabilities to total assets
(b) Ratio of stockholders€™ equity to total assets. Compare these ratios with the industry averages. Is CC Oliver Products€™ financial position better or worse than the average for theindustry?

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A1 CC Oliver Products, Inc. Income Statement Compared with Industry Average Year Ended December 31, 2014 Industry С.С. Oliver Average Net sales Cost of goods sold Gross profit Operating expenses Operating income Other expenses $960,000 662,400 297,600 220,800 76,800 9,600 567,200 57.3 42.7 29.4 13.3 2.5 9 Net income 0 10.8% A1 CC Oliver Products, Inc. Balance Sheet Compared with Industry Average December 31, 2014 Industry C.C. Oliver Average Current assets Fixed assets, net Intangible assets, net Other assets Total $292,000 72,800 14,000 21,200 400,000 72.1% 19.0 4.8 4.1 100.0% Current liabilities Long-term liabilities Stockholders' equity Total $ 188,000 84,000 128,000 400,000 47.2% 21.0 31.8 100.0% 10