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Assignment Material P18-3A Computer Doctor Lid. has asked for your help in comparing the company's profit performance and financial position with the computer services industry average. The manager has given you the company's income statement and balance sheet, and also the following industry average data for similar companies: COMPUTER DOCTOR LTD. Income Statement For the Year Ended December 31, 2020 Computer Doctor Ltd. Industry Average Net sales $425,625 100.0% Cost of goods sold 250,375 53.2 Gross margin 175,250 46.8 Operating expenses 87,300 21.3 Operating income 87,950 25.5 Other expenses 20,500 5.2 Net income $ 67,450 20.3%Assignment Material COMPUTER DOCTOR LTD. Balance Sheet December 31, 2020 Computer Doctor Ltd. Industry Average Current assets $162,750 62.5% Property and equip., net 85,250 35.2 Other assets 6,000 2.3 Total assets $254,000 100.0% Current liabilities $112,500 42.5% Long-term liabilities 62,500 32.5 Shareholders' equity 79,000 25.0 Total liabilities and shareholders' equity $254,000 100.0%Assignment Material 1. Prepare a hvocolumn commonsize income statement and a twocolumn commonsize balance sheet for Computer Doctor Ltd. The first column of each statement should present Computer Doctor Ltd.'s commonsize statement, and the second column should show the industry averages. Round all answers to one decimal place. 2. For the protability analysis, compare each of Computer Doctor Ltd.\"s {a} ratio of gross margin to net sales, {b} ratio of operating income to net sales, and {c} ratio of net income to net sales. Compare these gures to the industry averages. Is Computer Doctor Ltd.'s prot performance better or worse than the industry average? 3. For the analysis of nancial position, compare each of Computer Doctor Ltdfs {a} ratio of current assets to total assets, and {b} rao of shareholders' equity to total assets to the industry averages. Is Computer Doctor Ltdfs financial position better or worse than the industry averages? 2 3 Commonsize statements, analysis of profitability and financial position compared against the industry 22 current assets are 64.1% of total assets