Average Ratios by Type of Business Type of Business Cost of Goods Gross Profit Total Expenses Net Income Wages Rent Advertising Supermarkets 82.7% 17.3% 13.9% 3.4% 6.5% .8% 1.0% Men's and women's apparel 67.0% 33.0% 21.2% 11.8% 8.0% 2.5% 1.9% Women's apparel 64.8% 35.2% 23.4% 11.7% 7.9% 4.9% 1.8% Shoes 60.3% 39.7% 24.5% 15.2% 10.3% 4.7% 1.6% Furniture 68.9% 31.2% 21.7% 9.6% 9.5% 1.8% 2.5% Appliances 66.9% 33.1% 26.0% 7.2% 11.9% 2.4% 2.5% Drugs 67.9% 32.1% 23.5% 8.6% 12.3% 2.4% 1.4% Restaurants 48.4% 51.6% 43.7% 7.9% 26.4% 2.8% 1.4% Service stations 76.8% 23.2% 16.9% 6.3% 8.5% 2.3% .5% *Total Expenses represents the total of all expenses involved in running the firm. These expenses include, but are not limited to, wages, rent, and advertising. Lola's Shoe Store presents you with the following information related to its most current Income Statement: Amount Net sales $ 982,000 Cost of Goods Sold $ 576,000 Gross Profit A 406,000 Net Income $ 144,000 1. Calculate the percent of net sales, cost of goods sold, gross profit, and net income from the data in the chart above. 2. Determine the average ratio for this industry. Use the Average Ratios by Type of Business Chart located on page 617 of the textbook. 3. Compare your calculated percentages to the industry average for cost of goods sold, gross profit, and net income. Is Lola's Shoe Store doing better or worse than the industry averages? Explain your analysis