Both Demer Corp. and LitWel Inc. design, produce, market, and sell sports footwear and apparel. Key comparative figures (in thousands of dollars) from recent financial statements for these two organizations follow:
Required 1. Calculate common-size percents for the two companies for both years using the selected data provided. 2. Which company incurred a higher percent of net sales as income tax expense? 3. Which company has retained a higher portion of total earnings in the company? 4. Which company has a higher gross margin on sales? 5. Which company is holding a higher percent of total assets asinventory?