52e statements profitability and with the industry P18-39 Top managers of Tilt Windows 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 window-making industry. The accountant has given you the company's income statement and balance sheet, and also the average data for their industry (amounts in millions): TILT WINDOWS INC. Income Statement For the Year Ended December 31, 2020 Tilt Windows Industry Average Net sales $29.2 100.0% Cost of goods sold 17,6 65.9 Gross margin 11,6 341 Operating expenses 8.4 281 Operating Income 3.2 6.0 Other expenses 0.2 0.4 Net Income $ 3.0 5.6% Industry Average 66.6% 323 TILT WINDOWS INC. Balance Sheet December 31, 2020 Tilt Windows Current assets $10.4 Property, plant, equip.net 8.0 Other assets 0.2 Total assets $18.6 Current liabilities $ 6.2 Long-term liabilities 5.2 Shareholders' equity 7.2 $18.6 Total liabilities and shareholdersequity 1.1 100.0% 35,6% 19.0 45.4 100.0 Required 1. Prepare a two-column common-size income statement and a two-column com mon-size balance sheet for Tilt Windows Inc. The first column of each statement should present Tilt Windows Inc.'s common-size statement, and the second col- umn should show the industry averages. Round all answers to one decimal place. 2. For the profitability analysis, compare Tilt Windows Inc.'s (a) ratio of gross mar gin to net sales, (b) ratio of operating income (loss) to net sales, and (c) ratio of net income (loss) to net sales with the industry averages. Ils Tilt Windows Inc.'s profit performance better or worse than the average for the industry? 3. For the analysis of financial position, compare Tilt Windows Inc.'s (a) ratio of cur rent assets to total assets and (b) ratio of shareholders' equity to total assets with the industry averages. Is Tilt Windows Inc.'s financial position better or work than the average for the industry? alysis of Accounting Information