The Russell 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. (Click the icon to view the income statement.) B: (Click the icon to view the balance sheet.) Read the requirements. Requirement 1. Prepare a common-size income statement and balance sheet for Russell. The first column of each statement should present Russell's common-size statement, and the second column, the industry averages. Begin by preparing the common-size income statement for Russell. (Round your answers to one decimal place, X.X%.) Russell Department Stores, Inc. Common-Size Income Statement Year Ended December 31, 2018 Russell Industry Average Net Sales Revenue % 100.0 % Cost of Goods Sold 65.8% % Gross Profit % 34.2 % 19.7% % Operating Expenses Operating Income % 14.5 % 0.4 % Other Expenses % 14.1 Net Income % % Prepare a common-size balance sheet for Russell. (Round your answers to one decimal place, X.X%.) Russell Department Stores, Inc. Common-Size Balance Sheet Common-Size Balance Sheet December 31, 2018 Russell Industry Average Current Assets % 70.9 % % 23.6 % Property, Plant, and Equipment, Net Intangible Assets, Net % 0.8 % 4.7 % Other Assets % 100.0% Total Assets % Current Liabilities % 48.1 % 16.6% Long-term Liabilities Total Liabilities % 64.7 % 35.3 % Stockholders' Equity 100.0% Total Liabilities and Stockholders' Equity Requirement 2. For the profitability analysis, compute Russell's (a) gross profit percentage and (b) profit margin ratio. Compare these figures with the industry averages. Is Russell's profit performance better or worse than the industry average? (a) Compute Russell's gross profit percentage. (Round the gross profit percentage to one decimal place, X.X%.) Requirement 2. For the profitability analysis, compute Russell's (a) gross profit percentage and (6) profit margin ratio. Compare these figures with the industr a) Compute Russell's gross profit percentage. (Round the gross profit percentage to one decimal place, X.X%.) Gross profit percentage % b) Compute Russell's profit margin ratio. (Round the profit margin ratio to one decimal place, X.X%.) Profit margin ratio % Compare these figures with the industry averages. Is Russell's profit performance better or worse than the industry average? When comparing the gross profit percentage and the profit margin ratio with the industry averages, Russell's profit performance is than the industry a Requirement 3. For the analysis of financial position, compute Russell's (a) current ratio and (b) debt to equity ratio. Compare these ratios with the industry a ndustry average is 1.83. Is Russell's financial position better or worse than the industry averages? a) Compute Russell's current ratio. (Round the ratio to two decimal places, X.XX.) Current ratio b) Compute Russell's debt to equity ratio. (Round the ratio to two decimal places, X.XX.) 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 Russell Russell's current ratio is the industry average The debt to equity ratio is the industry averans Requirerfients Data Table you to compare the company's profit performance an the balance sheet.) pfit percentage and (b) profit margin ratio. Compare th Russell Department Stores, Inc. Balance Sheet Compared with Industry Average December 31, 2018 Industry Russell Average 1. Prepare a common-size income statement and balance sheet for Russell. The first col each statement should present Russell's common-size statement, and the second colu industry averages. 2. For the profitability analysis, compute Russell's (a) gross profit percentage and (b) pro ratio. Compare these figures with the industry averages. Is Russell's profit performance or worse than the industry average? 3. For the analysis of financial position, compute Russell's (a) current ratio and (b) debt to ratio. Compare these ratios with the industry averages. Assume the current ratio indus average is 1.47, and the debt to equity industry average is 1.83. Is Russell's financial better or worse than the industry averages? htage to one decimal place, X.X%.) 1 Data Table Current Assets $ 284,340 70.9 % 107,520 23.6 Property, Plant, and Equipment, Net Intangible Assets, Net Print Russell Department Stores, Inc. Income Statement Compared with Industry Done 6,720 21,420 0.8 4.7 Other Assets Year Ended December 31, 2018 dustry averages for $ 420,000 100.0 % Total Assets Industry Average dustry averages. Assume the current ratio industry average is 1.47, and the d Russell Current Liabilities $ 48.1 % 16.6 Net Sales Revenue $ 192,360 94,920 100.0 % 780,000 528,060 Cost of Goods Sold 65.8 Long-term Liabilities Total Liabilities 287,280 64.7 35.3 Gross Profit 251,940 163,020 132,720 34.2 19.7 Stockholders' Equity $ 420,000 100.0 % Operating Expenses Operating Income Total Liabilities and Stockholders' Equity 88,920 7,800 14.5 0.4 Other Expenses Russell's financial position better or worse than the industry averages? Print Done $ 81,120 14.1 % Net Income