Top managers of Bella Tiles Inc., a specialty fabricating company, have asked for your help in comparing the company's profit performance and financial position with the average for the tile-making industry. The accountant has given you the company's income statement and balance sheet, and also the average data for the tile-making industry (amounts in millions):

Required
1. Prepare a two-column common-size income statement and a two-column common-size balance sheet for Bella Tiles Inc. The first column of each statement should present Bella Tiles Inc.'s common-size statement, and the second column should show the industry averages.
2. For the profitability analysis, compare Bella Tiles Inc.'s
(a) Ratio of gross margin to net sales,
(b) Ratio of operating income (loss) to net sales, and
(c) Ratio of net income (loss) to net sales. Compare these figures with the industry averages. Is Bella Tiles Inc.'s profit performance better or worse than the average for the industry?
3. For the analysis of financial position, compare Bella Tiles Inc.'s
(a) Ratio of current assets to total assets and
(b) Ratio of shareholders' equity to total assets. Compare these ratios with the industry averages. Is Bella Tiles Inc.'s financial position better or worse than the average for the industry?

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BELLA TILES INC. Income Statement For the Year Ended December 31.2017 Net sales Cost of goods sold Gross margin Operating expenses Operating income Other expenses Net income Bella Tiles Inc. $29.2 17.6 11.6 8.4 3.2 Industry Average 100.0% 65.9 34.1 28.1 6.0 0.4 $ 3.0 BELLA TILES INC. Balance Sheet December 31,2017 Bella Industry Tiles Inc. Average Current assets Property, plant, equip., net Other assets Total assets $10.4 8.0 0.2 $18.6 666% 32.3 100.0% Current liabilities Long-term liabilities Shareholders' equity Total liabilities and $ 6.2 5.2 7.2 35.6% 19.0 45.4 shareholders' equity $18.6 100.0%