At the end of 2012, the following information is available for Chicago and St. Louis companies: Required

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At the end of 2012, the following information is available for Chicago and St. Louis companies:

Required
a. Prepare common size income statements for each company.
b. One company is a high-end retailer, and the other operates a discount store. Which is the discounter? Support your selection by referring to the common sizestatements.

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Survey of Accounting

ISBN: 978-0078110856

3rd Edition

Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi

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Question Posted: May 19, 2012 03:49 AM

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At the end of 2012, the following information is available for Chicago and St. Louis companies: Required

Question:

Chicago St. Louis Sales Cost of goods sold Selling and administrative expenses Total assets Stockholders' equity $3,000,000 1,800,000 960,000 3,750,000 1,000,000 $3,000 2,100 780 3,750 1,200

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a Common Size Income Statements Chicago St Louis Sales 3000000 1000 3000 1000 Cos...View the full answer

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