Compare Income Statements and Balance Sheets of Competitors a. Following are selected income statement data from two European grocery chain companies: Tesco PLC (UK) and Ahold (the Netherlands). Prepare a commonsize income statement. To do this, express each income statement amount as a percent of sales. Note: Round percentage to one decimal point (for example, round 18.566% to 18.6%).

Income Statements		Tesco			Carrefour Group
For Fiscal Year Ended		February 24, 2019			December 31, 2018
		( millions)			( millions)
Sales		60,076			73,242
Cost of goods sold		56,181			57,199
Gross profit		3,895			16,043
Total expenses		2,655			16,366
Net income		1,240			(323)

b. Following are selected balance sheet data from two European grocery chain companies: Tesco PLC (UK) and Ahold (the Netherlands). Prepare a commonsize balance sheet. To do this, express each balance sheet amount as a percent of total assets. Note: Round percentage to one decimal point (for example, round 18.566% to 18.6%).

		Tesco			Carrefour Group
		February 24, 2019			December 31, 2018
Balance Sheet		( millions)			( millions)
Current assets		11,908			17,550
Long-term assets		34,196			26,986
Total assets		46,104			44,536
Current liabilities		19,439			21,772
Long-term liabilities		12,721			12,154
Total liabilities		32,160			33,926
Stockholders equity		13,944			10,609
Total liabilities and equity		46,104			44,535

c. Which company has chosen to structure itself with a higher proportion of equity (and a lower proportion of debt)? AnswerTescoCarrefour