Porterfield Inc. and Beasley Ltd. are competitors. 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? Which company is more profitable? Explain your answer.

Transcribed Image Text:

(in millions) Net sales Cost of goods sold Porterfield $9,489 Beasle $19,536 14,101 3,846 16 7 Selling and administrative expens 2,690 Interest expense Other expense Income tax expense Net income 331 $ 590 597 $ 938 Black Corporation 2 Years Ended December 31 3 dollar amounts in millions) 2017 2016 2015 4 Consolidated Financial Measures and Ratios 5 Operating results Net earnin Per common share $ 769 675 656 $ 2.73 2.43 2.39 1,312 $1,239 1,205 ing income 4.4% 22.2% 12% 13.2% 4.4% 39% 22.4%| 23.4% 12% 10.9% 4.2 times 4.2 times 4.2 times ing margin 10 rcentage Return on net assets Return on shareholders Interest covera 12% 12.6% 12 13 14 Financial position 15 16 17 18 Working capital Current assets Current liabilities 1,744 $1,061 $972 6,4626,092 5,995 4,718 5,031 5,023