Requirement 1. Prepare a common-size income statement and balance sheet for O'Hare Products. The first column of each statement should 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 O'Hare Products, Inc. Data table O'Hare Products, Inc. - X Common-Size Income Statement Compared with Industry Average Year Ended December 31, 2021 Data table O'Hare Products, Inc. O'Hare Industry Average 100.0 % Net sales % % 57.3 % % 42.7% Cost of goods sold Gross profit Operating expenses Operating income % 29.4 % Balance Sheet Compared with Industry Average December 31, 2021 Industry O'Hare Average Current assets $ 523,600 72.1% Plant assets, net 122,400 19.0% Intangible assets, net 21,760 4.8% 4.1% 12,240 Other assets 680,000 100.0% Total % 13.3 % 2.5% Other expenses O'Hare Products, Inc. Income Statement Compared with Industry Average Year Ended December 31, 2021 Industry O'Hare Average Net sales $ 820,000 100.0% 410,000 57.3% Cost of goods sold Gross profit 410,000 42.7% 172,200 29.4% Operating expenses Operating income 237,800 13.3% 13,120 2.5% Other expenses $ 224,680 10.8% Net income % % 10.8 % Net income Now prepare a common-size balance sheet for O'Hare Products, Inc. $ 266,560 47.2% Current liabilities Long-term liabilities O'Hare Products, Inc. 149,600 263,840 21.0% 31.8% Common-Size Balance Sheet Compared with Industry Average Stockholders' equity $ 680,000 100.0% Total Net income Now prepare a common-size balance sheet for O'Hare Products, Inc. O'Hare Products, Inc. Common-Size Balance Sheet Compared with Industry Average December 31, 2021 O'Hare Industry Average Current assets % 72.1 % Fixed assets, net % 19.0 % Intangible assets, net % 4.8 % Other assets % 4.1 % % 100.0 % Total assets Current liabilities % 47.2 % Long-term liabilities % 21.0 % Stockholders' equity % 31.8 % % 100.0 % Total liabilities and stockholders' equity Requirement 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? Current assets % 72.1 % Fixed assets, net % 19.0 % Intangible assets, net % 4.8 % Other assets % 4.1 % % Total assets 100.0 % Current liabilities % 47.2 % Long-term liabilities % 21.0 % Stockholders' equity % 31.8 % % 100.0 % Total liabilities and stockholders' equity Requirement 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? O'Hare Products' common-size income statement shows that its ratios of gross profit, operating income and net income to net sales are industry than the industry averages. Overall, O'Hare Products' profit performance is than average for the Requirement 3. For the analysis of financial position, compare O'Hare Products' (a) ratios of current assets and current liabilities to total company's financial position better or worse than the average for the industry? io of stockholders' equity to total assets. Compare these ratios with the industry averages. Is the better y to total assets are than the industry averages. Overall, O'Hare Products' financial position O'Hare Products' common-size balance sheet shows that its ratios of current assets and of current liabilities to total assets, and ratio of s IS than average for the industry. worse