Dollar Tree Stores, Inc., and Dollar General Corporation are both discount retailers. As their adapted income statements (in $ millions) show, Dollar General's sales revenue was more than double that of Dollar Tree.

Required
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 yourconclusion?

Transcribed Image Text:

Dollar Tree Dollar General Sales Cost of goods sold Gross profit $6,630.5 4,252.2 2,378.3 Selling, general & administrative expenses 596.2 782.1 2.6 779.5 291.2 S 488.3 Net operating income Other expense Income before taxes Income tax expense Net income $14,807.2 10,109.3 4,697.9 3,207.1 1,490.8 265.5 1,225.3 458.6 $ 766.7