Question
Prepare common-size income statements for Walmart and Starbucks using the January 2015 and September 2014 information in the popup window: Which company is doing a
Prepare common-size income statements for Walmart and Starbucks using the January 2015 and September 2014 information in the popup window:
Which company is doing a better job of getting sales dollars to net income? Where is the one company having an advantage over the other company in turning revenue into net income?
Abbreviated Income Statements ($ in Millions) | ||||||
Company | Walmart, Inc. | Starbucks | ||||
Account | 1/31/2015 | 9/30/2014 | ||||
Sales | $491,942 | 100.00 | % | $16,852 | 100.00 | % |
Cost of goods sold | $-370,447 | ? | % | $-7,246 | ? | % |
Selling, general, and administrative expenses | $-94,506 | ? | % | $-11,559 | ? | % |
EBIT | $26,989 | ? | % | $-1,953 | ? | % |
Interest expense | $-2,359 | ? | % | $-25 | ? | % |
Taxes | $-9,113 | ? | % | $732 | ? | % |
Net income | $15,517 | ? | % | $-1,246 | ? | % |
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