DE 18-7 Nike, Inc., and The Home Depot are leaders in their respective industries. Compare the two companies by converting their income statements (adapted) to common size. (In millions) Nike Home Depot Net sales. $8,777 $38,434 Cost of goods sold. 5,494 27,023 Selling and administrative expenses. 2,427 7,579 Interest expense 44 28 Other expense 66 Income tax expense 295 1.484 Net income. $ 451 $ 2,320 Which company earns more net income? Which company's net income is a higher percentage of net sales? Which company is more profitable? Explain your answer.