EFFECT OF BUSINESS STRATEGY ON COMMON-SIZE INCOME STATEMENT. Access the investor relations or corporate information section of the websites of Dollar General (https://www.dollargeneral.com) and Macy's Inc. (https://www.macysinc.com). Study the strategies of each firm. Examine the following common-size income statements and indicate which firm is likely to be Dollar General and which is likely to be Macy's. Explain your reasoning. Indicate any percentages that seem inconsistent with their strategies.
|
|
Firm A
|
Firm B
|
|
Sales
|
100.0%
|
100.0%
|
|
Cost of Goods Sold
|
(70.7)
|
(60.3)
|
|
Selling and Administrative
|
(23.4)
|
(34.1)
|
|
Income Taxes
|
(0.8)
|
(0.5)
|
|
All Other Items
|
(4.0)
|
(0.1)
|
|
Net Income
|
1.0%
|
5.2%
|