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?

Crosby Co. 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			Dollars			Percentage of Sales
Sales		$28,729			100.0%			$29,795			100.0%
Cost of goods sold		15,934			55.5%			16,230			54.5%
Gross profits		$12,795			44.5%			$13,565			45.5%
Selling, general, and administrative expenses		6,333			22.0%			6,465			21.7%
Depreciation and amortization		248			0.9%			251			0.8%
Other operating expenses		296			1.0%			244			0.8%
Operating income		$5,918			20.6%			$6,605			22.2%
Interest expense		1,253			4.4%			1,190			4.0%
Nonoperating income (expenses)		(217)			-0.8%			(112)			-0.4%
Earnings before tax		$4,448			15.5%			$5,303			17.8%
Income taxes		1,526			5.3%			1,612			5.4%
Net income (loss)		$2,922			10.2%			$3,691			12.4%
Common shares outstanding		932.0						942.0
Earnings per share		$3.14						$3.92