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Ambrose Department Stores' chief executive officer (CEO) has asked you to compare the company's profit performance and financial position with the average 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 reguirements. Print Done Data table Data table 1. Prepare a common-size income statement and balance sheet for Ambrose Department Stores. The first column of each statement should present Ambrose Department Stores' common-size statement, while the second column should present the industry averages. 2. For the profitability analysis, compute Ambrose Department Stores' (a) ratio of gross profit to sales, (b) ratio of operating income to sales, and (c) ratio of net income to sales. Compare these figures with the industry averages. Is Ambrose Department Stores' profit performance better or worse than the industry average? 3. For the analysis of financial position, compute Ambrose Department Stores' (a) ratio of current assets to total assets and (b) ratio of stockholders' equity to total assets. Compare these ratios with the industry averages. Is Ambrose Department Stores' financial position better or worse than the industry averages? Requirement 1. Prepare a common-size income statement and balance sheet for Ambrose Department Stores. T while the second column should present the industry averages. (Round your answers to two decimal places, X.XX Start with preparing a common-size income statement. Ambrose Donartmont Ctaman ina ror the rear tnaed vecember 31 Sales revenues Less: Cost of goods sold Gross profit Less: Operating expenses Operating income Less: Interest expense Income before income taxes Less: Income tax expense Net income Now prepare a common-size balance sheet for Ambrose. (Round your answers to two decimal place: Ambrose Department Stores, Inc. Common-Size Balance Sheet Compared with Industry Average Requirement 2. For the profitability analysis, compute Ambrose Department Siores' (a) rai the industry averapes. Is Ambrose Department Stoces' profit prefomance better or worse th. Requirement 2. For the profitability analysis, compute Ambrose Department Stores' (a) ratio of gross profit to sales, (b) ratio of operating income to sales, and (c) ratio of net income to sales. Compare these figures with the industry averages. Is Ambrose Department Stores' profit performance better or worse than the industry average? Ambrose's common-size income statement shows that its ratios of gross profit, operating income, and net income to sales are than the industry averages. Overall, Ambrose's profit performance is than average for the industry. Requirement 3. For the analysis of financial position, compute Ambrose Department Stores' (a) ratio of current assets to total assets and (b) ratio of stockholders' equity to total assets. Compare these ratios with the industry averages. Is Ambrose Department Stores' financial position better or worse than the industry averages? Ambrose's common-size balance sheet shows that its ratio of current assets to total assets and its ratio of stockholders' equity to total assets are than the industry averages. Overall, Ambrose's financial position is than average for the industry

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