Question: Using your answer to FA2-1, compare and analyze the Safeway common-sized income statements to those of The Kroger Co. In FA2-1, Safeway Inc. operates over

Using your answer to FA2-1, compare and analyze the Safeway common-sized income statements to those of The Kroger Co.
In FA2-1, Safeway Inc. operates over 1,700 supermarkets throughout the United States. Income statements (in millions) for Safeway Inc. shown below were adapted from its recent financial statements.

The Kroger common-sized income statements are described and illustrated on page 61 of thischapter.

Year 2 Year 1 Cost of sales Gross profit .. (31,836) $ 11,794 (29443) $ 11,607 Operating expenses.... (10,659) (10448) 1,159 S 1,135 Operating income Other income (expense) Interest expense. . . (272) (298) (291) 20 $590 (364) 18 $ 517 Tax expense . Net income

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