Common-Size Statements (Alternate is 12-50.) Price-Break and Low-Cost are both discount store chains. Condensed income state- ments and balance sheets for the two companies are shown in Exhibit 12-15.-.-

Amounts are in thousands.

Required 1. Prepare common-size statements for Price-Break and Low-Cost for 20X9. 2. Compare the financial performance for 20X9 and financial position at the end of 20X9 for Price- Break with the performance and position of Low-Cost. Use only the statements prepared in requirement 1. 3. Calculate and compare ROE for the two firms.