Listed is the 2019 income statement and other financial data for Perez & Serrano Co. Perez & Serrano Co. Income Statement for the year ending December 31, 2019 (in thousands of dollars) Net sales $4980 Cost of goods sold 2246 Gross profits $2734 Other operating expenses 125 Earnings before interest, taxes and depreciation $2609 Depreciation 200 Earnings before interest and taxes (EBIT) $2406 Interest expenses 315 Earnings before taxes (EBT) $2094 Taxes 764 Net income $1327 Preferred stock dividends $ 60 Net income available for common stock $1267 Common stock dividends 395 Addition to retained earnings $ 872 Per (common) share data Earnings per share (EPS) $6.34 Dividends per share (DPS) $1.98 Book value per share (BVPS) $19745 Market value (price) per share $26850 Other financial Data for Perez & Serrano Co. Industry Times Interest earned = (EBIT / interest expense) 7.25 Net profit margin = (Net profit/sales) 18.75% Operating profits margin = (EBIT/sales) 42.02% Gross profit margin = (sales - cost of goods sold/sales) 49.16% Part I Using Excel or any other electronic sheet, prepare the Common Sized Income Statement for Perez & Serrano Co. Part II Compute the followings profitability ratios, compare with the industry and evaluate the performance of the Perez & Serrano, Inc. using the scale: better, on par or worse. a. Gross profits ratio = b. Operating profits margin = c. Net profit margin = Part III If the gross profits ratio for Perez & Serrano Co. is worse than the industry's gross profit ratio. You are the financial analyst for Perez & Serrano Co. and the management ask you a recommendation for improve that ratio. What would you recommend? Why