A. Prepare common-size income statements for each company. Comment on differences in the relative size of each line item.

B. Compute profit margin, return on assets, and return on stockholders equity for each company. Which company appears more profitable?

	Good Tech Company		Discount Computer parts
Sales	$ 745,363		$ 50,925
Cost of goods sold	512,363		32,744
Gross Profit	233,000		18,181
Selling, General, and Administrative Expenses	44,270		1,818
Other Operating Expenses	9,320		545
Interest Expense	18,640		146
Earnings before taxes	160,770		15,672
Taxes	56,269		5,485
Net Income	$ 104,501		$ 10,187
Average Total Assets	$ 950,007		$ 77,169
Average Stockholder's equity	$ 494,003		$ 56,334