Chapter 15, Problem 15.5SE

Preparing common-size income statement

Data for Martinez, Inc. and Rosario Corp. follow:

	Martinez	Rosario
Net Sales	$ 10,000	$ 17,000
Cost of Goods Sold	6,210	12,359
Other Expenses	3,180	3,825
Net Income	$ 610	$ 816

Requirements

1. Prepare common-size income statements.

2. Which company earns more net income?

3. Which company's net income is a higher percentage of its net sales?