At the end of 2013 the following information is available for Badger and Marmot 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? Support your selection by referring to the appropriateratios.

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Badger Marmot 1,000,000 $1,000,000 Sales Cost of goods sold Operating expenses Total assets Stockholders' equity 650,000 250,000 1,200,000 450,000 550,000 375,000 1,200,000 300,000