1. Company A - Company B: Answer choices is 1%-100%

2. Answer Choices - Company A/Company B

1. Common-size percentages are often used to compare the statements of companies of unequal size. The condensed income statements of Companies A and B are given below. Enter in the spaces provided the amounts expressed in common-size percentages. Company A and Company B Income Statements for Year Ended December 31, 2007 Dollar Amounts Common-Size Percentages Company A Company B Sales Cost of goods sold Gross margin Selling expenses Administrative expenses Total operating expenses Income Company A $450,000 261,000 $189,000 $81,000 45,000 $126,000 $63,000 Company B $525,000 210,000 $315,000 $89,250 52,500 $141,750 $173,250 2. After expressing the amounts of the income statements in common-size percentages, examine them and name the company that operated more efficiently