Madison Company and Orwell Corporation are competitors. Compare the two companies by converting their condensed income statements to common-size statements.

Which company earned more net income? Which company’s net income was a higher percentage of its net sales? Explain your answer.

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(In millions) Madison Orwell Net sales.. Cost of goods sold. . Selling and administrative expenses. Interest expense... Other expenses.... $17,000 10,166 4,828 $10,000 6,540 2,220 80 40 68 102 748 $ 1,088 Income tax expense Net income.. 320 $ 800