The following income statement data (in millions) for Dell Inc. and Hewlett-Packard

Company (HP) were taken from their recent annual reports:

_________________________________Dell.....................Hewlett-Packard

Net sales...................................$62,071...............................$120,357

Cost of goods sold (expense)..........(48,260)................................(92,385)

Operating expenses.......................(9,380)................................(39,029)

Operating income (loss)..................$ 4,431.............................$ (11,057)

a. Prepare a vertical analysis of the income statement for Dell. Round to one decimal place.

b. Prepare a vertical analysis of the income statement for HP. Round to one decimal place.

c. Based on (a) and (b), how does Dell compare to HP?