Penny Saver Inc.,and Buy 4 Less Stores are both discount retailers.As their adapted income statements in $ millions for 2014 show,Penny Saver sales revenue and net income were more than three times those of Buy 4 Less.

a.Prepare a common-size income statement for each company.Express all percentages using one decimal place.Your Answers may not add perfectly due to rounding.
b.Which company did the better job of managing expenses? How did you reach your conclusion?

Question

Penny Saver Inc.,and Buy 4 Less Stores are both discount retailers.As their adapted income statements in $ millions for 2014 show,Penny Saver sales revenue and net income were more than three times those of Buy 4 Less.
  
a.Prepare a common-size income statement for each company.Express all percentages using one decimal place.Your Answers may not add perfectly due to rounding.
b.Which company did the better job of managing expenses? How did you reach your conclusion?

Quizplus · Accepted Answer

The Answer of Penny Saver Inc.,and Buy 4 Less Stores are both discount retailers.As their adapted income statements in $ millions for 2014 show,Penny Saver sales revenue and net income were more than three times those of Buy 4 Less.
  
a.Prepare a common-size income statement for each company.Express all percentages using one decimal place.Your Answers may not add perfectly due to rounding.
b.Which company did the better job of managing expenses? How did you reach your conclusion?