At the end of 2016 the following information is available for Jackson and Fargo 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 appropriate ratios.

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Jackson Fargo Sales Cost of goods sold Operating expenses Total assets Stockholders' equity $1,000,000 $1,000,000 700,000 250,000 1,200,000 360,000 600,000 300,000 1,200,000 360,000