Please solve the below problem ASAP for MBA 560 Financial and Managerial Accounting.

Craft inc., and Kleen Corporation are competitiors

Data Table

(In millions)	Craft	Kleen
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . .	$17,800	$7,569
Cost of goods sold . . . . . . . . . . . . . . . . . . .	10,573	4,965
Selling and administrative expenses . . . . .	4,895	1,521
Interest expense . . . . . . . . . . . . . . . . . . . . .	53	23
Other expenses . . . . . . . . . . . . . . . . . . . . .	89	38
Income tax expense . . . . . . . . . . . . . . . . . .	730	250
Net income . . . . . . . . . . . . . . . . . . . . . . . . .	$1,460	$ 772

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? Explain your answer.

Begin by converting the condensed income statements to common size. (Round your answers to one decimal place, X.X%.)

	..

(In millions)	Craft			Kleen
	Amount	Percent		Amount	Percent
Net sales	$17,800		%	$7,569		%
Cost of goods sold	10,573			4,965
Selling and administrative expenses	4,895			1,521
Interest expense	53			23
Other expense	89			38
Income tax expense	730			250
Net income	$1,460		%	$ 772		%

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

Craft

Kleen

earned more net income.

Craft

Kleen

has a net income at a higher percentage of net sales.

Craft

Kleen

is more profitable because it earns a higher percentage of profit on each dollar of sales than

Craft

Kleen

does.

more

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