Prepare common-size income statements (Learning Objective 3)

Compare Sanchez and Alioto by converting their income statements to common size.

Which company earns more net income? Which company’s net income is a higher percentage of its net sales?

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Sanchez Alioto Net sales.......... $9,489 $19,536 Cost of goods sold............... 5,785 14,101 Other expense.... 3,114 4,497 Net income..... $ 590 $ 938