Block Department Stores' chief executive officer (CEO) has asked you to compare the company's profit performance and financial position with the average for the industry. The CEO has given you the company's income statement and balance sheet, as well as the industry average data for retailers. (Click the icon to view the income statement.) (Click the icon to view the balance sheet.) Read the requirements Requirement 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. (Round your answers to two decimal places, X.XX.) Start with preparing a common-size income statement. -X -X Data Table Data Table 100,00 % A B C B 1 Block Department Stores, Inc. Common-Size Income Statement Compared to Industry Average For the Year Ended December 31 Industry Block (%) Average Sales revenues 100.0% 67.30 65.796 Less: Cost of goods sold Gross profit 34.396 21.00 19.596 Less: Operating expenses : Operating income 14.8% 0.15 0.5% Less: Interest expense 96 Income before income taxes 14.3% 0.85 0.3% Less: Income tax expense : 10.90 14.0% Net income 96 32.70 % 2 2 3 Block Department Stores, Inc. Balance Sheet Compared with Industry Average As of December 31 (amounts in thousands) Industry Block Average 11.70 % 4 5 11.55 % 8 Assets 7 Current assets $ 312.340 70.9% 1. Block Department Stores, Inc. 2 Income Statement Compared with Industry Average 3 For the Year Ended December 31 4 (amounts in thousands) Industry 5 Block Average 8 Sales revenues S 782.000 100.0% 7 Less: Cost of goods sold 526,286 65.7% 8 Gross profit S 255.714 34 396 9 Less: Operating expenses 164,220 19.5% 10 Operating income S 91,4941 14.8% 11 Less: Interest expense : 1,173 0.5% 12 Income before income taxes 90.321 14.3% 13 Less: Income tax expense 5,083 0.3% 14 Net income S 85,238 14.0% 117.780 23.7% Now prepare a common-size balance sheet for Block. (Round your answers to two decimal places, X.XX.) 8 Fixed assets, net 9 Intangible assets, net 10 Other assets 5.980 0.79% 23.920 4.7% 11 Total assets $ 480,000 100.0% Block Department Stores, Inc. Common-Size Balance Sheet Compared with Industry Average As of December 31 Industry Block (%) Average 12 Liabilities $ 213,440 48.3% 16.7% 104,880 Assets 70.9% Current assets s 318,320 65.096 13 Current liabilities 14 Long-term liabilities 15 Total liabilities 16 Stockholders' equity 17 Total common stockholders' equity 18 Total liabilities and equity 96 23.7% Print Done Fixed assets, net Intangible assets, net 96 $ 141,680 35.0% 0.7% 4.7% Other assets 96 $ $ 480.000 100.0% Total assets 96 100.0% Liabilities Print Done Current liabilities 96 48.3% 16.7% Long-term liabilities % 96 65.0% Total liabilities Stockholders' equity Total common stockholders' equity 35.0% 96 100.0% Total liabilities and equity