Porterfield Inc. and Beasley Ltd. are competitors. Compare the two companies by converting their condensed income statements
Question:
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.
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(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
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Related Book For
Financial Accounting
ISBN: 978-0134564142
6th Canadian edition
Authors: Walter Jr. Harrison, Charles T. Horngren, C. William Thomas, Greg Berberich, Catherine Seguin
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