(L. OBJ. 3) Common-size Income statement [10 min] Data for Sanchez, Inc., and Bajo, Cor...

(L. OBJ. 3) Common-size Income statement [10 min]

Data for Sanchez, Inc., and Bajo, Corp., follow:

Requirements

1. Prepare common size income statements.

2. Which company earns a higher-percentage net income?

3. Which company’s cost of goods sold is a higher percentage of its net sales?