Safeway Inc. operates over 1,700 supermarkets throughout the United States. Income statements (in millions) for Safeway Inc. shown below were adapted from its recent financial statements.

1. Prepare common-sized income statements for Years 2 and 1. Round to one decimal place.
2. Using (1), analyze the performance of Safeway in Year2.

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Year 2 Year 1 Cost of sales Gross profit .. (31,836) $ 11,794 (29443) $ 11,607 Operating expenses.... (10,659) (10448) 1,159 S 1,135 Operating income Other income (expense) Interest expense. . . (272) (298) (291) 20 $590 (364) 18 $ 517 Tax expense . Net income