Below are the financial statements for two entertainment firms, Crosby Co. and Prairie Inc. for 2017 and 2018

a. How did Crosby Co.’s profit margins change from 2017 to 2018?
To what would you attribute the differences? Answer the same question for Prairie Inc.

b. Compare the profit margins between Crosby Co. and Prairie Inc.
How are they different? How would you explain these differences?

c. What differences do you notice in the common-sized balance sheets that might indicate that one of the firms is doing better than the other?

Crosby Co. Annual Income Statement and Common-sized Income Statement for Years Ending December 31, 2017 and 2018 (in $ millions except earnings per share)

Crosby Co. Balance Sheet and Common-Sized Balance Sheet for Years Ending December 31, 2017 and 2018 (millions)

Prairie Inc. Balance Sheet for Years Ending December 28, 2017 and December 29, 2018 ($ millions)

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Sales 2017 2018 Dollars Percentage Dollars Percentage of Sales of Sales $28,729 100.0% $29,795 100.0% Cost of goods 15.934 55.5% 16,230 54.5% sold Gross profits $12,795 44.5% $13,565 45.5% Selling. 6,333 22.0% 6,465 21.7% general, and administrative expenses Depreciation 248 0.9% 251 0.8% and amortization Other 296 1.0% operating expenses E 0.8% Operating $5,918 20.6% $6,605 22.2%