Exercise $4-19$A $($Algo$)$ Using common size statements and ratios to make comparisons LO $4-8$

The following information is available for the Memphis and Billings companies.

$$MemphisBillingsSales$ $1,240,960$$ $1,223,680$Cost of goods sold$800,480878,480$Operating expenses$338,240294,100$Total assets$1,250,0001,490,000$Stockholders$$ equity$360,000350,000$

Required

Prepare a common size income statement for each company.

Compute the return on assets and return on equity for each company.

Which company is more profitable from the stockholders$$ perspective?

One company is a high$-$end retailer, and the other operates a discount store. Which is the discounter?

Exercise $4-19$A $($Algo$)$ Using common size statements and ratios to make comparisons LO $4-8$

The following information is available for the Memphis and Billings companies.

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?

Complete this question by entering your answers in the tabs below.

Prepare a common size income statement for each company.

Note: Round percentage answers to $1$ decimal place.