Consider the data for Russell Department Stores presented in Problem P17-35B.
In Problem P17-35B
The Russell 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 Russell. The first column of each statement should present Russell's common-size statement, and the second column, the industry averages.
2. For the profitability analysis, compute Russell's (a) gross profit percentage and (b) profit margin ratio. Compare these figures with the industry averages. Is Russell's profit performance better or worse than the industry average?
3. For the analysis of financial position, compute Russell'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 Russell's financial position better or worse than the industry averages?

RUSSELL DEPARTMENT STORES, INC. Income Statement Compared with Industry Average Year Ended December 31, 2016 Industry Average 100.0% 65.8 Net Sales Cost of Goods Sold Gross Profit Operating Expenses Operating Income Other Expenses Net Income Russell 780,000 528,060 251,940 159,900 92,040 7,020 S 85,020 34.2 19.7 14.5 0.4 14.1 % RUSSELL DEPARTMENT STORES, INC. Balance Sheet Compared with Industry Average December 31, 2016 Current Assets Fixed Assets, Net Intangible Assets, Net Other Assets Total Assets Russell $ 323,520 124,800 8,160 23,520 480,000 Industry Average 70.9% 23.6 0.8 4.7 100.0% Current Liabilities Long-term Liabilities Total Liabilities Stockholders' Equity Total Liabilities and Stockholders' Equity $221,760 108,480 330,240 149,760 S 480,000 48.1% 16.6 64.7 35.3 100.0%