Top managers of Gordon 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 Gordon Products. The first column of each statement should present Gordon Products' common-size statement, and the second column should show the industry averages.
2. For the profitability analysis, compare Gordon Products'
(a) ratio of gross profit to net sales,
(b) ratio of operating income to net sales, and
(c) ratio of net income to net sales with the industry averages. Is Gordon Products' profit performance better or worse than the average for the industry?
3. For the analysis of financial position, compute Gordon Products'
(a) ratios of current assets and current liabilities to total assets and
(b) ratio of stockholders' equity to total assets. Compare these ratios with the industry averages. Is Gordon Products' financial position better or worse than the average for the industry?

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Gordon Products, Inc. Income Statement Compared with Industry Average Year Ended December 31, 2016 GordonIndustry Average Net sales Cost of goods sold Gross profit Operating expenses Operating income Other expenses Net income $ 955,000 649,400 05,600 210,100 95,500 4,775 100.0% 57.3 42.7 29.4 13.3 2.5 10.8% Gordon Products, Inc. Balance Sheet Compared with Industry Average December 31, 2016 Gordon Industry Average Current assets Fixed assets,net Intangible assets,net Other assets Total 531,300 129,720 27,600 1,380 690,000 72.1% 19.0 4.8 4.1 100.0% Current liabilities Long-term liabilities Stockholders' equity Total $271,860 146,280 271,860 690,000 47290 21.0 31.8