Financial Statement Analysis 729 PIR (Les canari ure the indstry The coy arning Objectives I, 3.4: Prepare common-site statements analyze profitabiny ons to the industry) To ustry) top managers of Ryan Products Inchave asked you she cumpany's profit performance and financial site with the average for the sompany's accountant has given you the business's income statement, balance LO 1.3.4 s and industry data: Ryan Products, Inc. come Statement Compared with Industry Average Year Ended December 31, 2013 1 Net sales Cost of goods sold Gross profit Operating expenses 7 Operating income Other expenses 9 Net income Ryan Industry Average $ 500 000 100.0% 355.000 573 145.000 120.000 25,000 7,500 $ 1700 Ryan Products, Inc. Balance Sheet Compared with Industry Average December 31, 2018 3 Current assets 4 Plant assets, net 5 Intangible assets net 6 Other assets 7 Total Ryan Industry Average $ 496 400 72.1% 121.040 19,0 27.200 35,360 $ 680.000 1000 $ 266560 144,160 9 Current liabilities 10 Long-term liabilities 11 Stockholders' equity 12 Total 47.25 210 31.8 1000 269280 $ 680,000 Requirements 1. Prepare a common-size income statement and balance sheet for Ryan Products. The first column of each statement should present the company's common-size statement, and the second column should show the industry averages 2. For the profitability analysis, compare the company's (a) ratio of gross profit to net sales, (b) ratio of operating income to net sales, and (c) ratio of net income to net sales with the industry averages. Is the company's profit performance better or worse than the average for the industry? For the analysis of financial position, calculate Ryan Products' (a) ratios of current assets and current liabilities to total assets and (b) ratio of stockholders' equity to total assets. Compare these ties with the industry averages, is the company financial position hele or worse than the average for the industry