- X Data Table McCormick Auto Sales Income Statement Compared with Industry Average Year Ended December 31, 2018 cC str Industry McCormick Average Net sales 550,000 374,000 100.0 % Cost of goods sold 64.3 % Gross profit 176,000 35.7 % Operating expenses 118,250 27.3% Operating income 57,750 8.4 % 3,850 Other expenses 1.1 % $ 53,900 Aotincoma 7.3 % Print Done i Data Table McCormick Auto Sales Balance Sheet Compared with Industry Average December 31, 2018 Industry McCormick Average 344,500 77.2 % Current assets $ 16.3 % Fixed assets, net 98,580 16,960 69,960 2.8% Intangible assets, net 3.7 % Other assets 530,000 100.0 % Total assets 249,100 Current liabilities 40.1 % Long-term liabilities 113,950 166,950 20.3 % 39.6 % Stockholders' equity 530,000 $ 100.0 % Total liabilities and stockholders' equity Print Done MacBook Ai MoComick Auto Sales asked for your help in oomparing the company's proft performance and financial position with he average for the auto sales industry. The owner has given you the company's income statement and baiane sheet as well as the industry average data for retailers of used autos (Click the icon to view the inoome statement) (Click the icon to view the balance sheet) Read the requirements Requirement 1. Prepare a two-column, common-size income statement and a two-column common-size balance shoet for MoComick Auto Sales. The first column of each statement should present MoCormick Auto Sales' conm size statement and the second column should show the industry averages. (Round the peroentages to the nearest one-tenth peroent, XX%) Start by preparing a common-size income statement for McCormick Auto Sales McCormick Auto Sales Common-Size Income Statement Compared to Industry Average Year Ended December 31, 2018 MeCormick Industry (%) Average (%) Net sales % 100.0 % 64.3 % Cost of goods sold % 35.7 % Gross proft 273% % Operating expenses 8.4 % Operating income 1.1% 13 Other expenses Net income Enter any number in the edt fields and then continue to the next question McCormick Auto Sales asked for your help in comparing the company's profit performance and financial position with the average for the auto sheet as well as the industry average data for retailers of used autos. (Click the icon to view the income statement.)E(Click the icon to view the balance sheet.) Read the requirements. Now prepare a common-size balance sheet for McCormick Used Auto Sales. McCormick Auto Sales Common-Size Balance Sheet Compared with Industry Average December 31, 2018 McCormick Industry (%) Average (%) 77.2 % Current assets 16.3 % Fixed assets, net % 2.8 % Intangible assets, net 3.7 % Other assets 100.0 % Total assets % 40.1 % Current liabilities % 20.3 % Long-term liabilities 39.6 % Stockholders' equity 100.0 % % Total liabilities and stockholders' equity Enter any number in the edit fields and then continue to the next question. Intangible assets, net 28% 37% Oeher assets 100.0 Total assets Current liabilities 40.1% Long-term liabilities 20.3% 39.6 Stockholders' equity 100.0 Total liabilities and stockholders' equity % Requirement 2. For the profitability analysis, examine McCormick Auto Sales (a) ratio of gross profit to net sales, (b) ratio of operating income to net salos, and (c) ratio of net income to net sales. Compare these figur industry averages. Is McComick's profit performance better or worse than the industry average? McCormick's common-size income statement shows that its ratios of (1) gross profit to net sales is than the industry average, (b) operating income to net sales is than the industry average, and (c) nes males is than the industry average. Requirement 3. For the analysis of financial position, examine McCormick Auto Sales' (a) ratio of current assets to total assets, and (b) ratio of stockholders' equity to total assets. Compare these ratios with the indusa McCormick Auto Sales' financial position better or worse than the industry average? than the industry average, and (b) stockholders equity to total assets is than average for the indu McComick's common-size balance sheet shows that its ratos of (a) current assets to total assets is nter any number in the edit fields and then continue to the next