The Roost 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. B (Click the icon to view the income statement.) (Click the icon to view the balance sheet.) Read the requirements. Requirement 1. Prepare a common-size income statement and balance sheet for Roost. The first column of each statement should present Roost's common-size statement, and the second column, the industry averages. Begin by preparing the common-size income statement for Roost. (Round your answers to one decimal place, X.X%.) Roost Department Stores, Inc. Common-Size Income Statement Year Ended December 31, 2018 Roost Industry Average Net Sales Revenue 100.0 1 0 Cost of Goods Sold Gross Profit 34.2 % Operating Expenses Operating Income Other Expenses A Net Income Enter any number in the edit fields and then click Check Answer. i Requirements - X Data Table 1. Prepare a common-size income statement and balance sheet for Roost. The first column of each statement should present Roost's common-size statement, and the second column, the industry averages. 2. For the profitability analysis, compute Roost's (a) gross profit percentage and (b) profit margin ratio. Compare these figures with the industry averages. Is Roost's profit performance better or worse than the industry average? 3. For the analysis of financial position, compute Roost's (a) current ratio and (b) debt to equity ratio. Compare these ratios with the industry averages. Assume the current ratio industry average is 1.47, and the debt to equity industry average is 1.83. Is Roost's financial position better or worse than the industry averages? Roost Department Stores, Inc. Balance Sheet Compared with Industry Average December 31, 2018 Industry Roost Average $ 70.9% Current Assets Property, Plant, and Equipment, Net Intangible Assets, Net 23.6 317,720 123,140 5,170 23,970 470,000 0.8 4.7 Other Assets Print Done $ 100.0 % Total Assets i Data Table Current Liabilities 48.1 % 217.140 106,220 16.6 Long-term Liabilities Total Liabilities 323,360 146,640 64.7 35.3 Stockholders' Equity Roost Department Stores, Inc. Income Statement Compared with Industry Average Year Ended December 31, 2018 Industry Roost Average Print Done $ Net Sales Revenue Cost of Goods Sold Gross Profit 781,000 527,956 100.0 % 65.8 253,044 160,886 34.2 19.7 Operating Expenses Operating Income 14.5 92,158 7,810 Other Expenses 0.4 $ 84,348 14.1 % Net Income