Please do a, b and c parts

Mini Case. Chapter 3 (similar to) Question Help The financial statements for 2017 and 2018 for Crosby Co. are shown in this popup window, and those for Prairie Inc. are shown in this popup window, a. How did Crosby Co.'s profit margins change from 2017 to 2018? To what would you attribute the differences? Answer the same question for Prairie Inc. b. Compare the profit margins between Crosby Co. and Prairie Inc. How are they different? How would you explain these differences? c. What differences do you notice in the common-sized balance sheets that might indicate that one of the firms is doing better than the other? 2018 Percentage of Sales Dollar value Sales 100.0% 79.0% Prairie Inc. Annual Income Statement and Common-Sized Income Statement for Years Ending January 31, 2017 and January 31, 2018 (in $ millions except earnings per share) 2017 Percentage of Dollars Sales $ 42,278 100.0% $ 45,041 Cost of goods sold 33.415 79.0% 35,591 Gross profits $ 8,863 21.0% $ 9.450 Selling, general, and administrative expenses (139) 0.3% Operating income $ 8,724 20.6% $ 9,167 Interest expense 369 0.9% 235 Nonoperating income (expenses) 905 Earnings before tax $ 9,260 21.9% $ 9,620 Income taxes 3,087 7.3% 2,984 Net income (loss) $ 6,173 14.6% $ 6,636 21.0% 0.6% 283 20.4% 0.5% 1.5% 2.1% 688 21.4% 6.6% 14.7% 1.800.0 1.800.0 Common shares outstanding Earnings per share 3.43 $ 3.69 January 31, 2018 Percentage of Dollars Assets $ 3,931 4.8% 6.967 8.6% 1,487 1.8% 1,724 2.1% $ 14,109 17.4% $ 41,192 50.7% (22,459) -27.6% $ 18,733 48,399 23.1% 59.6% $ 81,241 100.0% Prairie Inc. Balance Sheet and Common-Sized Balance Sheet for Years Ending January 31, 2017 and January 31, 2018 (5 millions) January 31, 2017 Percentage of ASSETS Dollars Assets Cash and cash equivalents $ 3,387 4.5% Receivables 6,540 8.7% Inventories 1,537 2.1% Other current assets 2,245 3.0% Total current assets $ 13,709 18.3% Gross fixed assets $ 38,582 51.5% Accumulated depreciation and amortization (20,687) -27.6% Net fixed assets $ 17,895 23.9% 43,294 57.8% Other assets TOTAL ASSETS $ 74,898 100.0% LIABILITIES Accounts payable and accruals 4,619 6.2% Short-term notes payable 3,614 4.8% Other current liabilities 4,580 6.1% Total current liabilities $ 12,813 17.1% Long-term debt 10,981 14.7% Deferred taxes 2.251 3.0% Other liabilities 9,094 12.1% TOTAL LIABILITIES $ 35,139 46.9% EQUITY Common equity: Total common stock sold $ 31,731 42.4% Less: Treasury stock-total dollar amount (31,671) -42.3% Total common stock 60 0.1% Retained earnings 42,965 57.4% (3,266) -4.4% Other equity 53.1% Total common equity $ 39,759 TOTAL LIABILITIES AND STOCKHOLDERS' $ 74,898 100.0% EQUITY 6.0% 1.9% 6.5% 14.4% $ 4,899 1,512 5,293 $ 11,704 13,050 4,050 7,008 $ 35,812 16.1% 5.0% 8.6% 44.1% 41.2% -42.6% -1.4% $ 33,440 (34,582) (1,142) 47.758 (1.187) $ 45,429 58.8% -1.5% 55.9% $ 81,241 100.0% 2018 Percentage of Sales 100.0% 54.5% 45.5% 21.7% Crosby Co. Annual Income Statement and Common-sized Income Statement for Years Ending January 31, 2017 and January 31, 2018 (in $ millions except earnings per share) 2017 Percentage of Dollars Sales Dollars Sales $ 28,729 100.0% $ 29,795 Cost of goods sold 15,934 55.5% 16.230 Gross profits $ 12,795 44.5% $ 13,565 Selling, general, and administrative expenses 6,333 22.0% 6,465 Depreciation and amortization 248 0.9% 251 Other operating expenses 296 1.0% Operating income $ 5,918 20.6% $ 6,605 Interest expense 1,253 4.4% 1,190 Nonoperating income (expenses) (217) -0.8% (112) Earnings before tax $ 4,448 15.5% $5,303 Income taxes 1,526 5.3% 1,612 Net income (loss) $ 2,922 10.2% $ 3,691 0.8% 0.8% 244 22.2% 4.0% -0.4% 17.8% 5.4% 12.4% Common shares outstanding Earnings per share 932.0 $ 3.14 942.0 $ 3.92 Crosby Co. Balance Sheet and Common-Sized Balance Sheet for Years Ending January 31, 2017 and January 31, 2018 (5 millions) January 31, 2017 Percentage of ASSETS Dollars Assets Cash and short-term investment $ 2,841 4.2% Receivables 7,385 10.8% Inventories 2,036 3.0% Other current assets 1,002 1.5% Total current assets $ 13,264 19.5% Gross fixed assets $ 57,607 84.6% Accumulated depreciation and amortization (4,828) -7.1% Net fixed assets $ 52,779 77.5% Other assets 2.046 3.0% $ 68,089 100.0% January 31, 2018 Percentage of Dollars Assets $ 1,862 2.7% 7,868 11.6% 2,028 3.0% 1,086 1.6% $ 12.844 18.9% $ 57,849 85.1% (5,189) -7.6% $ 52,660 77.4% 2.490 3.7% TATAI ACCETO $ 67,994 100.0% IUIAL MOOCIO $ 8,039 11.8% $ 7,322 10.8% 749 1.1% 66 0.1% 1,011 1.5% 995 1.5% 12.3% 29.6% $ 9,799 19,122 2,127 7244 14.4% 28.1% 3.1% 10.6% $ 8,383 20.099 2.642 6.966 3.9% 10.2% $ 38,292 56.2% $ 38,090 56.0% LIABILITIES Accounts payable and accruals Short-term notes payable Other current liabilities Total current liabilities Long-term debt Deferred taxes Other liabilities TOTAL LIABILITIES EQUITY Common equity: Common stock: Par value Capital surplus Total common stock sold Less: Treasury stock-total dollar amount Total common stock Retained earnings Total common equity TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 17 154,577 0.0% 225.6% 0.0% 227.0% 227.0% -51.5% 175.5% 131.8% $ 154,594 (35,077) $ 119,517 89,721 $ 29,796 $ 17 153,410 $ 153,427 (37,630) $ 115,797 85,893 $ 29,904 225.6% -55.3% 170.3% 126.3% 43.8% 44.0% $ 68,088 100.0% $ 67.994 100.0%