Problem
1.	Common-size percentages are often used to compare the statements of companies of unequal size. The condensed income statements of Companies A and B are given below. Enter in the spaces provided the amounts expressed in common-size percentages.
	Company A and Company B
	Income Statements for Year Ended December 31, 2007
				Dollar Amounts						Common-Size Percentages
				Company A			Company B			Company A			Company B
	Sales			$450,000			$525,000
	Cost of goods sold			261,000			210,000
	Gross margin			$189,000			$315,000
	Selling expenses			$81,000			$89,250
	Administrative expenses			45,000			52,500
	Total operating expenses			$126,000			$141,750
	Income			$63,000			$173,250
2.	After expressing the amounts of the income statements in common-size percentages, examine them and name the company that operated more efficiently.