Exercise 4-14A (Algo) Single-step and multistep income statements LO 4-6 The following information was taken from the accounts of Green Market, a small grocery store, at December 31, Year 1. The accounts are listed in alphabetical order, and all have normal balances. Dollar amounts are given in thousands Accounts payable Accounts receivable Advertising expense Cash Common stock $ 605 405 200 415 205 Cost of goods sold 600 Interest expense 65 Merchandise inventory 400 Prepaid rent 45 Retained earnings, 1/1/Year 1 640 Sales revenue 1,050 Salaries expense 180) Rent expense 100 Gain on sale of land 90 Required Prepare an income statement for the year using the single-step and multistep approach. (Enter values in thousands of dollars. Amounts to be deducted and losses should be indicated with a minus sign.) Single-step Expenses GREEN MARKET Income Statement For the Year Ended December 31, Year 1 Total cost and expenses 0 Net income (oss) Multistep GREEN MARKET Income Statement For the Year Ended December 31, Year 1 Operating expenses Total operating expenses Operating income (loss) Non-operating items Net income (loss) The following information is available for the Memphis and Billings companies Sales Cost of goods sold Operating expenses Total assets Stockholders' equity Required Memphis $1,268,640 Billings $1,241,720 830,520 912,520 326,760 278,100 1,120,000 1,140,000 390,000 350,000 a. Prepare a common size income statement for each company b. Compute the return on assets and return on equity for each company c. Which company is more profitable from the stockholders' perspective? d. One company is a high-end retailer, and the other operates a discount store. Which is the discounter? Required A Required B Required C Required D Prepare a common size income statement for each company. (Round percentage answers to 1 decimal place.) MEMPHIS COMPANY AND BILLINGS COMPANY Common Size Income Statements Memphis % Billings % Required A Required B > Required A Required B Required C Required D Compute the return on assets and return on equity for each company. (Round your answers to 1 decimal place.) Return on assets Return on equity Memphis Company Billings Company % % % Required A Required B Required C Required D Which company is more profitable from the stockholders' perspective? Which company is more profitable from the stockholders' perspective? Required A Required B Required C Required D One company is a high-end retailer, and the other operates a discount store. Which is the discounter? Which is the discounter