The Verifine 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.) (Click the icon to view the balance sheet.) Read the requirements Requirement 1. Prepare a common-size income statement and balance sheet for Verifine. The first column of each statement should present Verifine's common-size statement, and the second column, the industry averages. Begin by preparing the common-size income statement for Verifine. (Round your answers to one decimal place, XX%) Verifine Department Stores, Inc. Common-Size Income Statement Year Ended December 31, 2018 Verifine Industry Average % 100.0 % Net Sales Revenue 65,8% % % Cost of Goods Sold Gross Profit Operating Expenses Operating Income 34.2% 19.7 7% % % 14.5 % 0.4% % Other Expenses % 14.1 % Net Income i Data Table Verifine Department Stores, Inc. Income Statement Compared with Industry Average Year Ended December 31, 2018 Industry Average Verifine Net Sales Revenue $ 100.0 % 783,000 525,393 65.8 Cost of Goods Sold Gross Profit 34.2 257,607 159,732 19.7 Operating Expenses Operating Income 14.5 97,875 4,698 Other Expenses 0.4 $ 93,177 14.1 % Net Income Print Done Data Table Verifine Department Stores, Inc. Balance Sheet Compared with Industry Average December 31, 2018 Industry Verifine Average $ 324,000 70.9 % Current Assets Property, Plant, and Equipment, Net Intangible Assets, Net 125,760 23.6 0.8 7,680 22,560 Other Assets 4.7 $ 480,000 100.0 % Total Assets Current Liabilities 48.1 % 222,240 108,480 Long-term Liabilities 16.6 Total Liabilities 64.7 330.720 149,280 Stockholders' Equity 35.3 Total Liabilities and Stockholders' Equity $ 480,000 100.0 % Print Done i Requirements 1. Prepare a common-size income statement and balance sheet for Verifine. The first column of each statement should present Verifine's common-size statement, and the second column, the industry averages. 2. For the profitability analysis, compute Verifine's (a) gross profit percentage and (b) profit margin ratio. Compare these figures with the industry averages. Is Verifine's profit performance better or worse than the industry average? 3. For the analysis of financial position, compute Verifine'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 Verifine's financial position better or worse than the industry averages? Dvint nana