The following information is available for the Memphis and Billings companies.

Required

a$.$ Prepare a common size income statement for each company.

b$.$ Compute the return on assets and return on equity for each company.

c$.$ Which company is more profitable from the stockholders' perspective?

d$.$ One company is a high$-$end retailer, and the other operates a discount store. Which is the discounter?

Complete this question by entering your answers in the tabs below.

Required $A$

Required B

Prepare a common size income statement for each company.

Note: Round percentage answers to $1$ decimal place.