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Dollar Tree Stores, Inc. , and Dollar General Corporation are both discount retailers. As their adapted income statements (in $ millions) show, Dollar Generals sales
Dollar Tree Stores, Inc., and Dollar General Corporation are both discount retailers. As their adapted income statements (in $ millions) show, Dollar Generals sales revenue was more than double that of Dollar Tree.
Dollar Tree | Dollar General | |
Sales | $6,630.5 | $14,807.2 |
Cost of goods sold | 4,252.2 | 10,109.3 |
Gross profit | 2,378.3 | 4,697.9 |
Selling, general, & administrative expenses | 1,596.2 | 3,207.1 |
Net operating income | 782.1 | 1,490.8 |
Other expense | 2.6 | 265.5 |
Income before taxes | 779.5 | 1,225.3 |
Income tax expense | 291.2 | 458.6 |
Net income | $488.3 | $766.7 |
Prepare a common-size income statement for each company. (Round answers to 2 decimal places, e.g. 50.12%.)
Dollar Tree | Dollar General | |
Sales | % | % |
Cost of goods sold | % | % |
Gross profit | % | % |
Selling, general & administrative expenses | % | % |
Net operating income | % | % |
Other expense | % | % |
Income before taxes | % | % |
Income tax expense | % | % |
Net income | % | % |
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