Fixxit 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:

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

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FIXXIT LTD Balance Sheet December 31,2017 Current assets Property and equip, net Other assets Total assets Current liabilities Long-term liabilities Shareholders' equity Total liabilities and Fixxit Ltd. $162,750 85,250 6,000 $254,000 $112,500 62,500 79,000 Industry Average 625°10 35.2 2.3 100.0% 42.5% 32.5 25.0 shareholders' equity $254,000 100.0% FIXXIT LTD 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 Fixxit Ltd $425,625 250,375 175,250 87,300 87,950 20,500 $67,450 Industry Average 100.0% 53.2 46.8 21.3 25.5 5.2 20.3%