Porterfield Inc. and Beasley Ltd. 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? Which company is more profitable? Explain your answer.

(in millions) Net sales Cost of goods sold Porterfield $9,489 5,785 2,690 Beas $19,536 14,101 3,846 Interest expense Other expense Income tax expense Net income 331 $ 590 597 $ 938 Black Corporation Years ended December 31 (Dollar amounts in millions) Consolidated Financial Measures and Ratios Operating results Net earnings Per common share Operating income Operating margin Gross profit percentage Return on net assets Return on shareholders' equity Interest coverage Financial position Working capital Current assets Current liabilities 2014 2013 2012 $ 769 675 656 $ 2.73 2.43 2.39 1,312 $ 1,239 1,205 4.4% 22.2% 12% 13.2% 4.4% 22.4% 12% 12.6% 3.9% 23.4% 12% 10.9% 4.2 times 4.2 times 4.2 times $ 1,744 1,061 $ 972 $ 6,462 6,092 $ 5,995 $ 4,718 5,03 5,023