Top managers of Medical Products Inc. have asked for your help in comparing the company's profit performance and financial position with the average for the industry. The accountant has given you the company's income statement and balance sheet and also the following data for the industry:

Requirements
1. Prepare a common-size income statement and balance sheet for Medical Products. The first column of each statement should present Medical Products's common-size statement, and the second column should show the industry averages.
2. For the profitability analysis, compute Medical Products'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.
Compare these figures with the industry average. Is Medical Products's profit performance better or worse than the average for the industry?
3. For the analysis of financial position, compute Medical Products's
(a) Ratios of current assets and current liabilities to total assets and
(b) Ratio of shareholders' equity to total assets. Compare these ratios with the industry averages. Is Medical Products's financial position better or worse than the average for the industry?

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Medical Products Inc. 1Income Statement Compared With Industry Average For the Year Ended December 31, 2017 Medical Industry 2 Products $ 957,000 652,000 305,000 200,000 105,000 3,000 $ 102,000 Av 3 Net sales 4 Cost of goods sold 5 Gross profit 6 Operating expenses 7 Operating income 8 Other e 9 Net income 10 100.0% 55.9 44.1 28.1 16.0 2.4 13.6% Medical Products Inc. 1Balance Sheet Compared With Industry Average As at December 31, 2017 Medical Products 486,000 117,000 24,000 3,000 630,000 Industry Average 74.4% 20.0 0.6 5.0 100.0% 2 3 Current assets 4 and ent, net ntangıble assets, net 6 Other assets 7 Total 8 Current liabilities 9 Long-term liabilities 10 Shareholders' equity 11 Total 12 245,000 114,000 271,000 630,000 45.6% 19.0 35.4 1 00.0%