Question 3 Campers, Inc., manufactures camping equipment. Shown below for the current year are the income statement for the company and a common size summary for the industry in which the company operates. (Notice that the percentages in the right-hand column are not for Campers, Inc., but are average percentages for the industry.) Campers. Inc. 20,000,000 9,800,000 10,200,000 Industry Average (%) 100 57 43 Sales (net) Cost of goods sold Gross profit on sales Operating expenses: Selling General and administrative Total operating expenses Operating income Income taxes Net income 16 20 36 4,200,000 3,400,000 7,600,000 2,600,000 1,200,000 1,400,000 23% 7 3 4 Return on assets 14 Instructions: a. Prepare a two-column common size income statement. The first column should show for Campers, Inc., all items expressed as a percentage of net sales. The second column should show the equivalent industry average for the data given in the problem. The purpose of this common size statement is to compare the operating results of Campers, Inc., with the average for the industry. b. Comment specially on differences between Campers, Inc., and the industry average with respect to gross profit on sales, selling expenses, weneral and administrative expenses, operating income and net income. Suggest pos the more important disparities