Problem 12-14

Dollar Tree Stores, Inc., andDollar General Corporationare both discount retailers. As their adapted income statements (in $ millions) show, Dollar General?s sales revenue was more than double that of Dollar Tree.

Dollar Tree	Dollar General
Sales	$6,630.5	$14,807.2
Cost of goods sold	4,252.2	10,109.3
Gross profit	2,378.3	4,697.9
Selling, general, & administrative expenses	1,596.2	3,207.1
Net operating income	782.1	1,490.8
Other expense	2.6	265.5
Income before taxes	779.5	1,225.3
Income tax expense	291.2	458.6
Net income	$488.3	$766.7

Prepare a common-size income statement for each company.(Round answers to 2 decimal places, e.g. 50.12%.)

DollarTree	Dollar General
Sales	%	%
Cost of goods sold	%	%
Gross profit	%	%
Selling, general & administrative expenses	%	%
Net operating income	%	%
Other expense	%	%
Income before taxes	%	%
Income tax expense	%	%
Net income	%	%

Problem 12-14 Dollar Tree Stores, Inc., and Dollar General Corporation are both discount retailers. As their adapted income statements (in $ millions) show, Dollar General's sales revenue was more than double that of Dollar Tree. Dollar Tree Sales Dollar General $6,630.5 $14,807.2 Cost of goods sold 4,252.2 10,109.3 Gross profit 2,378.3 4,697.9 Selling, general, & administrative expenses 1,596.2 3,207.1 782.1 1,490.8 Net operating income Other expense 2.6 265.5 Income before taxes 779.5 1,225.3 Income tax expense 291.2 458.6 $488.3 $766.7 Net income Prepare a common-size income statement for each company. (Round answers to 2 decimal places, e.g. 50.12%.) Dollar Tree Dollar General Sales % % Cost of goods sold % % Gross profit % Selling, general & administrative expenses % % % Net operating income % % Other expense % Income before taxes % % % Income tax expense % % Net income % %