The financial statements for 2017 and 2018 for Crosby Co. are shown in this popup window,

, and those for Prairie Inc. are shown in this popup window,

a. How did Crosby Co.'s profit margins change from 2017 to 2018? To what would you attribute the differences? Answer the same question for Prairie Inc.

b. Compare the profit margins between Crosby Co. and Prairie Inc. How are they different? How would you explain these differences?

c. What differences do you notice in the common-sized balance sheets that might indicate that one of the firms is doing better than the other?

Prairie Inc. Annual Income Statement and Common-Sized Income Statement for Years Ending
January 31, 2017 and January 31, 2018 (in $ millions except earnings per share)
	2017						2018
	Dollars			Percentage of Sales			Dollar value			Percentage of Sales
Sales		$42,278			100.0%			$45,041			100.0%
Cost of goods sold		33,415			79.0%			35,591			79.0%
Gross profits		$8,863			21.0%			$9,450			21.0%
Selling, general, and administrative expenses		(139)			0.3%			283			0.6%
Operating income		$8,724			20.6%			$9,167			20.4%
Interest expense		369			0.9%			235			0.5%
Nonoperating income (expenses)		905			2.1%			688			1.5%
Earnings before tax		$9,260			21.9%			$9,620			21.4%
Income taxes		3,087			7.3%			2,984			6.6%
Net income (loss)		$6,173			14.6%			$6,636			14.7%
Common shares outstanding		1,800.0						1,800.0
Earnings per share		$3.43						$3.69