Financial Statement Analysis Compare common-size income statements for two companies Madison Company and Orwell Corporation are competitors (In millions) Madison Orwell $17,000 $10,000 10,166 Net sales Cost of goods sold Selling and administrative expenses 6,540 2,220 4,828 Interest expense Other expenses 68 80 102 40 Income tax expense 320 748 1,088 Net income 800 Use the blue shaded areas on the ENTERANSWERS tab for inputs Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong Requirements 1 Compare the two companies by converting their condensed income statements to common-size statements 2 Which company earned more net income? Which company's net income was a higher percentage of its net sales? 1. Compare the two companies by converting their condensed income statements to common-size statements. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong.) Madison Comp. Orwell Net sales Cost of goods sold Gross profit Selling and administrative expenses Interest expense Other expenses Income tax expense Net income 2. Which company earned more net income? Which company's net income was a higher percentage of its net sales? Which company earned more net income? Which company's net income was a higher percentage of its net sales? Madison Comp. Orwell, Corp