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P14-35A Comprehensive analysis (Learning Objectives 2, 3, & 4) Block Department Stores' chief executive officer (CEO) has asked you to compare the company's profit performance and financial position with the average 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. A B C 18 Stockholders' equity 19 Total common stockholders' equity S 141,680 35.0% 20 21 Total liabilities and equity Un 460,000 100.0% 22Requirements 1. Prepare a common-size income statement and balance sheet for Block Department Stores. The rst column of each statement should present Block Department Stores' common-size statement, while the second column should present the industry averages. 2. For the protability analysis, compute Block Department Stores' (a) ratio of gross prot to sales, (b) ratio of operating income to sales, and (c) ratio of net income to sales. Compare these gures with the industry averages. Is Block Department Stores' prot performance better or worse than the industry average? 3. For the analysis of nancial position, compute Block Department Stores' (a) ratio of current assets to total assets and (b) ratio of stockholders' equity to total assets. Compare these ratios with the industry averages. Is Block Department Stores' nancial position better or worse than the industry averages