Exercise 4-19A (Algo) Using common size statements and ratios to make comparisons LO 4-8 The following information is available for the Memphis and Billings companies: Sales Cost of goods sold Operating expenses Total assets Stockholders' equity Required Memphis $1,212,000 Billings $1,150,640 800,000 878,000 336,000 229,320 1,440,000 1,330,000 380,000 380,000 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. Required A Required B Required C Required D Prepare a common size income statement for each company. (Round percentage answers to 1 decimal place.) MEMPHIS COMPANY AND BILLINGS COMPANY Common Size Income Statements Memphis % Billings 0 00 0 00 $ 0 00 $ 0 0.0 Required A Required B Required C Required D Compute the return on assets and return on equity for each company. (Round your answers to 1 decimal place.) Memphis Company Billings Company Return on assets % Return on equity % < Required A Required C > Required A Required B Required C Required D Which company is more profitable from the stockholders' perspective? Which company is more profitable from the stockholders' perspective? < Required B Required D > Required A Required B Required C Required D One company is a high-end retailer, and the other operates a discount store. Which is the discounter? Which is the discounter? < Required C Required D