Income statement relations. Selected income statement information for Circuit City Stores, a retailer of electronic products, for three recent years appears below (amounts in millions):

a. Compute the missing amounts for each of the three years.

b. Prepare a common-size income statement for each year, in which sales equals 100 percent and each expense and net income are expressed as a percentage of sales. What factors appear to explain the change in the ratio of net income to sales?

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Year 6 Year 7 Year 8 Sales..... $7,029 ? $8,871 Cost of Goods Sold... 5,394 $5,903 ? Marketing and Administrative Expenses 1,322 1,511 1,849 Interest Expense 25 30 27 Income Tax Expense 108 84 64 Net Income ? 136 104