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

Memphis Billings

Sales $ $958,000$ $ $1,154,240$

Cost of goods sold $644,000729,000$

Operating expenses $234,000330,620$

Total assets $1,380,0001,490,000$

Stockholders$$ equity $324,000314,000$

Required:

Prepare a common size income statement for each company.

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

Which company is more profitable from the stockholders$$ perspective?

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