a 1 c66 10 1 Ba964c469d18dab?deeplink true8 platforms idad&idpName: SMS &conte tld-urn%3Audson%3ApeE End Of Chapter: Financial Statement Analysis sheet, as well as the industry average data for retailers. Block Department Stores, Inc. 2 ncome Statement ared with For the Year December 31 lock Industry Average 6 Sales revenues 7 Less: Cost of goods sold 526,286 255,714 164,220 657% 195% 0.5% 0.396 9 Less: Operat 10 Operating income 11 Less: Interest expense es 173 12 Income before income taxes 13 Less: Income tax expense 90,321 5,083 14 Net income Block Department Stores, Inc. Balance Sheet Compared with Industry Average As of December 31 (amounts in thousands) Block Industry Average Assets 7 Current assets 8 Fixed assets,net 9 Intangible assets, net 10 Other assets 11 Total assets 12 13 14 Current liabilities 15 Long-term liabilities 16 Total liabilities 312,340 117,760 5,980 23,920 70.9% -... 23.7% 0.7% 4.7% Liabilities 213,440 104,880 318.320 48.3% 16.7% 18 19 Total common stockholders' equity 20 21 Total liabilities and equity Stockholders' equity 35.0% 460,000 100.0% Requirements 1. Prepare a common-size income statement and balance sheet for Block Requirements 1. Prepare a common-size income statement and balance sheet for Block Department Stores. The first column of each statement should present Block Department Stores' common-size statement, while the second column should present the industry averages. 2. For the profitability analysis, compute Block Department Stores' (a) ratio of gross profit to sales, (b) ratio of operating income to sales, and (c) ratio of net income to sales. Compare these figures with the industry averages. Is Block Department Stores' profit performance better or worse than the industry average? 3. For the analysis of financial 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' financial position better or worse than the industry averages