Consider the data for Klein Department Stores presented in Problem P15-24A.
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 common-size income statement and balance sheet for Klein. The first column of each statement should present Klein's common-size statement, and the second column, the industry averages.
2. For the profitability analysis, compute Klein's (a) gross profit percentage and (b) profit margin ratio. Compare these figures with the industry averages. Is Klein's profit performance better or worse than the industry average?
3. For the analysis of financial position, compute Klein's (a) current ratio and (b) debt to equity ratio. Compare these ratios with the industry averages. Assume the current ratio industry average is 1.47, and the debt to equity industry average is 1.83. Is Klein's financial position better or worse than the industry averages?

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