Borman Ltd. 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 computer services companies:

Borman Ltd.
Income Statement
For the Year Ended December 31, 2020
		Industry
	Borman Ltd.	Average
Net sales	$433,000	100.00%
Cost of goods sold	255,000	53.2
Gross margin	178,000	46.8
Operating expenses	95,000	21.3
Operating income	83,000	25.5
Other expenses	25,000	5.2
Net income	$58,000	20.30%

Borman Ltd.
Balance Sheet
31-Dec-20
		Industry
	Borman Ltd.	Average
Current assets	$166,000	62.50%
Property and equip., net	90,000	35.2
Other assets	6,600	2.3
Total assets	$262,600	100.00%
Current liabilities	$114,000	42.50%
Long-term liabilities	66,000	32.5
Shareholders' equity	82,600	25
Total liabilities and shareholders' equity	$262,600	100.00%

1.	Make a two-column common-size income statement and a two-column common-size balance sheet for Borman Ltd. The first column of each statement should present Borman Ltd.'s common-size statement, and the second column should show the industry averages.
2.	For the profitability analysis, compare each of Borman 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 figures to the industry averages. Is Borman Ltd.'s profit performance better or worse than the industry average?
3.	For the analysis of financial position, compare each of Borman Ltd.'s (a) ratio of current assets to total assets, and (b) ratio of shareholders' equity to total assets to the industry averages. Is Borman Ltd.'s financial position better or worse than the industry averages?