1. Prepare a common-size income statement and statement of financial position for Peters. The first column of each statement should present Peters common-size statement and the second column the industry averages.

2. Compare Peters gross profit percentage and rate of return on net sales with the industry averages. Is Peters performance better or worse than the industry average?

3. Compare Peters current ratio and debt to equity ratios with the industry averages. Is Peters performance better or worse than the industry average? (Marks: 17)

Peters Retailers Pty Income Statement compared with Industry Average For the year ended 30th June 2016 Industry Average 100.0% 65.8 34.2 19.7 04 14.1% Peters Net sales Cost of sales Gross profit Selling and general expenses Other expenses Profit $972,500 653.520 318,980 201,308 111837 Peters Retailers Pty Statement of financial Position compared with Industry Average as at 30h June 2016 Peters Current assets Property, plant and equipment, net Intangible assets, net Other assets Total assets Current liabilities Non-current liabilities Shareholders' equity Total liabilities and shareholders' equity $406,800 151,200 10,800 31.200 $600,000 278,400 134,400 Industry Average 70.9% 23.6 0.8 4.7 10000% 48.1 16.6 187,200 35.3