Two major consumer electronics retailers are Best Buy and Circuit City Stores, Inc. Recent fiscal year-end income statements for both companies for a three-year period shown below and at the top of page 260.
1. Prepare a graph displaying the years 2002, 2003, and 2004 on the x-axis and the gross profit to sales ratio for Best Buy and Circuit City on the y-axis. Connect the ratio for each company with a line. Thus, the graph will display two lines, one for each company.
2. Prepare a second graph displaying the years 2002, 2003, and 2004 on the x-axis and the operating profit to sales ratio for Best Buy and Circuit City on the y-axis. Connect the ratio for each company with a line. Thus, the graph will display two lines, one for each company.
3. Interpret yourgraphs.

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Best Buy Income Statements Fiscal Years Ending 2002, 2003, and 2004 (in millions) 2004 $27,433 20,938 6,495 5,053 1442 2003 2002 Net sales Cost of merchandise sold Gross profit Selling, general, and administrative expenses Operating income $24,548 $20,943 15,998 S5,871 4,945 3,935 1,3041,010 18,677 1555 4,567 Circuit City Stores, Inc. Income Statements Fiscal Years Ending 2002, 2003, and 2004 in millions) Net sales Cost of merchandise sold Gross profit Selling, general, and administrative expenses Operating income 2004 $10,472 7,903 2,569 2,457 S 112 2003 $9,857 7,573 $2,284 2,278 2002 $9,953 7,603 $2,350 2,329 21