Kraft, Inc., and Claire Corporation are competitors. Compare the two companies by converting their condensed income statements to common size.

Which company earned more net income? Which company€™s net income was a higher percentage of its net sales? Explain youranswer.

Transcribed Image Text:

(In millions) Net sa Cost of goods sold. Selling and administrative expenses Interest expense Othe Income tax expense Net income Kraft Claire $18,700 7869 4,965 1,521 23 38 250 $1,072 10,573 4,895 53 89 730 2,360 r expenses