Describe three things that the common-size income statements tell you when you compare the three companies.

Archer Inc. Income Statement Amount 250,000 1,500 248,500 8,250 161,625 15,000 154,875 93,625 45,000 25,000 23,625 9,450 14,175 Sales Less: Returns and Allowances Net Sales Beginning Inventory Net Purchases Ending Inventory Total Cost of Goods Sold Gross Profit Selling Expenses Administrative Expenses Income Before Taxes Income Tax Expense Net Income % 100.60% 0.60% 100.00% 3.32% 65.04% 6.04% 62.32% 37.68% 18.11% 10.06% 9.51% 3.80% 5.70% Bayside Inc. Income Statement Amount 1,500,000 5,000 1,495,000 80,550 1,108,050 135,000 1,053,600 441,400 198,000 45,000 198,400 79,360 119,040 Sales Less: Returns and Allowances Net Sales Beginning Inventory Net Purchases Ending Inventory Total Cost of Goods Sold Gross Profit Selling Expenses Administrative Expenses Income Before Taxes Income Tax Expense Net Income % 100.33% 0.33% 100.00% 5.39% 74.12% 9.03% 70.47% 29.53% 13.24% 3.01% 13.27% 5.31% 7.96% Citywide Ltd. Income Statement Amount 6,000,000 75,000 5,925,000 610,000 4,220,000 575,000 4,255,000 1,670,000 630,000 340.000 700,000 280,000 420,000 Sales Less: Returns and Allowances Net Sales Beginning Inventory Net Purchases Ending Inventory Total Cost of Goods Sold Gross Profit Selling Expenses Administrative Expenses Income Before Taxes Income Tax Expense Net Income % 101.27%! 1.27% 100.00% 10.30% 71.22%! 9.70% 71.81% 28.19%! 10.63% 5.74% 11.81% ! 4.73% 7.09%