Requirement 1. Prepare a common-size income statement and balance sheet for Caffrey Products. The first column of each statement shor present the company's common-size statement, and the second column should show the industry averages. (Round the percentages to the nearest one-tenth percent, X.X%. Do not enter the % sign in any of the input fields.) Start by preparing a common-size income statement for Caffrey Products, Inc. Now prepare a common-size balance sheet for Caffrey Products, Inc. Caffrey Products, Inc. Common-Size Balance Sheet Compared with Industry Average Requirement 2. For the profitability analysis, compare the company's (a) ratio of gross profit to net sales, (b) ratio of operating income to ne 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 avera for the industry? Caffrey Products' common-size income statement shows that its ratios of gross profit, operating income and net income to net sales are (1) than the industry averages. Overall, Caffrey Products' profit performance is (2) tor the industry. Requirement 3. For the analysis of financial position, compare Caffrey Products' (a) ratios of current assets and current liabilities to total assets and (b) ratio of stockholders' equity to total assets. Compare these ratios with the industry averages. Is the company's financial positi better or worse than the average for the industry? industry. Requirement 3. For the analysis of financial position, compare Caffrey Products' (a) ratios of current assets and current liabilities to total assets and (b) ratio of stockholders' equity to total assets. Compare these ratios with the industry averages. Is the company's financial positi better or worse than the average for the industry? Caffrey Products' common-size balance sheet shows that its ratios of current assets and of current liabilities to total assets, and ratio of stockholders' equity to total assets are (3) than the industry averages. Overall, Caffrey Products' financial position is (4) than average for the industry. 1. Prepare a common-size income statement and balance sheet for Caffrey 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? 3. For the analysis of financial position, compare Caffrey Products' (a) ratios of current assets and current liabilities to total assets and (b) ratio of stockholders' equity to total assets. Compare these ratios with the industry averages. Is the company's financial position better or worse than the average for the industry? (1) worse (2) worse (3) worse (4) worse better better better