Prepare common-size income statements for Wal-Mart and Starbucks using the January 2014 information for Walmart and your new pro forma September 2013 information for Starbucks provided in Problems 5 and 6.Which company is doing a better job of getting sales dollars to net income? Where is the one company having an advantage over the other company in turning revenue into net income?

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Starbucks Abbreviated Income Statements for the Years Ending September 30, 2011–2013 (S in millions) Account 9/30/2011 9/30/2012 9/30/2013 9/30/2014 Sales $11,700 $13,300 $14,892 Cost of goods sold $ 4,916 $ 5,813 $ 6,382 SG&A + Other $ 5,396 $ 4,942 $ 8,713 $ 1,842 $ 2,091 $ (203) EBIT Interest expense 33 33 28 Taxes $ 674 $ (239) $ 563 Net income $ 1,246 $ 1,384