The Klein Department Stores, Inc. chief executive officer (CEO) has asked you to compare the company's profit performance and financial position with the averages for the industry. The CEO has given you the company's income statement and balance sheet as well as the industry average data for retailers.

Klein Department Stores, Inc.

Income Statement Compared with Industry Average

Year Ended December 31, 2016

Klein Industry Average

Net Sales $782,000 100.0 %

Cost of Goods Sold 527,850 65.8

Gross Profit 254,150 34.2

Operating Expenses 161,874 19.7

Operating Income 92,276 14.5

Other Expenses 4,692 0.4

Net Income $87,584 14.1 %

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Klein Department Stores, Inc.

Balance Sheet Compared with Industry Average

December 31, 2016

Klein Industry Average

Current Assets $337,500 70.9 %

Fixed Assets, Net 130,000 23.6

Intangible Assets, Net 6,500 0.8

Other Assets 26,000 4.7

Total Assets $500,000 100.0 %

Current Liabilities $231,000 48.1 %

Long-term Liabilities 115,000 16.6

Total Liabilities 346,000 64.7

Stockholders' Equity 154,000 35.3

Total Liabilities and Stockholders' Equity $500,000 100.0

_____________________________________________________________ Prepare a common-size income statement and balance sheet for Klein. The first column of each statement should present Klein's common-size statement, and the second column, the industry averages.