P10-27A MEDICAL PRODUCTIONS 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:A B C D1 MEDICAL PRODUCTS INC.INCOME STATEMENT COMPARED WITH INDUSTRY AVERAGEFOR THE YEAR ENDED DECEMBER 31,20202 MEDICALPRODUCTINDUSTRYAVERAGE3 NET SALES $ 957,000 100.0% 4 COST OF GOODS SOLD 652,000 55.9 5 GROSS PROFIT 305,000 44.1 6 OPERATING EXPENSES 200,000 28.1 7 OPERATING INCOME 105,000 16.0 8 OTHER EXPENSES 3,000 2.4 9 NET INCOME 102,000 13.6% A B C D1 MEDICAL PRODUCTS INC.BALANCE SHEET COMPARED WITH INDUSTRY AVERAGEAS AT DECEMBER 31,20202 MEDICALPRODUCTINDUSTRYAVERAGE3 CURRENT ASSETS $ 486,000 74.4% 4 PROPERTY AND EQUIPMENT, NET 117,000 20.0 5 INTANGIBLE ASSETS,NET 24,000 0.6 6 OTHER ASSETS 3,000 5.0 7 TOTAL $630,000 100.0% A B C D8 CURRENT LIABILITIES $245,000 45.6% 9 LONG-TERM LIABILITIES 114,000 19.0 10 SHAREHOLDER'S EQUITY 271,000 35.4 11 TOTAL $630,000 100.0% REQUIREMENTS1. PREPARE A COMMON-SIZE INCOME STATEMENT AND BALANCE SHEET FOR MEDICAL PRODUCTS. THE FIRST COLUMN OF EACH STATEMENT SHOULD PRESENT MEDICAL PRODUCT'S COMMON-SIZE STATEMENT, AND THE SECOND COLUMN SHOULD SHOW THE INDUSTRY AVERAGES.2. FOR THE PROFITABILITY ANALYSIS, COMPUTE MEDICAL PRODUCT'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 PRODUCT'S PROFIT PERFORMANCE BETTER OR WORSE THAN THE AVERAGE FOR THE INDUSTRY?3. FOR THE ANALYSIS OF FINANCIAL POSITION, COMPUTE MEDICAL PRODUCT'S (A) RATIOS OF CURRENT ASSETS AND CURRENT LIABILITIES TO TOTAL ASSETS AND (B) RATIO OF SHAREHOLDER'S EQUITY TO TOTAL ASSETS. COMPARE THESE RATIOS WITH THE INDUSTRY AVERAGES. IN MEDICAL PRODUCT'S FINANCIAL POSITION BETTER OR WORSE THAN THE AVERAGE FOR THE INDUSTRY?