At the end of 2016 the following information is available for Billings and Phoenix companies: Required a.

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At the end of 2016 the following information is available for Billings and Phoenix companies:

At the end of 2016 the following information is available

Required
a. Prepare a common size income statement for each company.
b. Compute the return on assets and return on equity for each company.
c. Which company is more profitable from the stockholders€™ perspective?
d. 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 appropriate ratios.

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Fundamental Financial Accounting Concepts

ISBN: 978-0078025907

9th edition

Authors: Thomas Edmonds, Christopher Edmonds

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