LO 1-3 1.8 Effect of Business Strategy on Common-Size Income Statements. Access the investor relations or corporate information section of the websites of Apple Computer (www.apple.com) and Dell (www.dell.com). Study the strategies of each firm. Examine the following common-size income statements and indicate which firm is likely to be Apple Computer and which is likely to be Dell. Explain your reasoning. Indicate any percentages that seem inconsistent with their strategies. Firm A Firm B Sales Cost of goods sold Selling and administrative expenses Research and development Income taxes All other items Net income 100.0% (82.1) (11.6) (1.1) (1.4) 0.2 4.1% 100.0% (59.9) (9.7) (3.1) (8.9) 0.8 19.2% LO 1-3 1.9 Effect of Business Strategy on Common-Size Income Statements. Access the investor relations or corporate information section of the websites of Dollar General (www.dollargeneral.com) and Macy's Inc. (www.macysinc.com). Study the strategies of each firm. Examine the following common-size income statements and indicate which firm is likely to be Dollar General and which is likely to be Macy's. Explain your reasoning. Indicate any percentages that seem inconsistent with their strategies. Firm A Firm B Sales Cost of goods sold Selling and administrative expenses Income taxes All other items Net income 100.0% (70.7) (23.4) (0.8) (4.0) 1.0% 100.0% (60.3) (34.1) (0.5) (0.1) 5.2% LO 1-3 1.8 Effect of Business Strategy on Common-Size Income Statements. Access the investor relations or corporate information section of the websites of Apple Computer (www.apple.com) and Dell (www.dell.com). Study the strategies of each firm. Examine the following common-size income statements and indicate which firm is likely to be Apple Computer and which is likely to be Dell. Explain your reasoning. Indicate any percentages that seem inconsistent with their strategies. Firm A Firm B Sales Cost of goods sold Selling and administrative expenses Research and development Income taxes All other items Net income 100.0% (82.1) (11.6) (1.1) (1.4) 0.2 4.1% 100.0% (59.9) (9.7) (3.1) (8.9) 0.8 19.2% LO 1-3 1.9 Effect of Business Strategy on Common-Size Income Statements. Access the investor relations or corporate information section of the websites of Dollar General (www.dollargeneral.com) and Macy's Inc. (www.macysinc.com). Study the strategies of each firm. Examine the following common-size income statements and indicate which firm is likely to be Dollar General and which is likely to be Macy's. Explain your reasoning. Indicate any percentages that seem inconsistent with their strategies. Firm A Firm B Sales Cost of goods sold Selling and administrative expenses Income taxes All other items Net income 100.0% (70.7) (23.4) (0.8) (4.0) 1.0% 100.0% (60.3) (34.1) (0.5) (0.1) 5.2%