Penny Saver Inc

question 28

Essay

Penny Saver Inc.,and Buy 4 Less Stores are both discount retailers.As their adapted income statements in $ millions for 2014 show,Penny Saver sales revenue and net income were more than three times those of Buy 4 Less.

a.Prepare a common-size income statement for each company.Express all percentages using one decimal place.Your Answers may not add perfectly due to rounding.
b.Which company did the better job of managing expenses? How did you reach your conclusion?

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Definitions:

Cone Receptors

Photoreceptor cells in the retina of the eye that function best in relatively bright light and enable the perception of colors.

Auditory Nerve

The nerve structure that receives information about sound from the hair cells of the inner ear and carries these neural impulses to the brain’s auditory areas.

Cochlea

A spiral-shaped, fluid-filled inner ear structure crucial for converting sound waves into nerve signals.

Pain Receptors

Sensory neurons located throughout the body that respond to damaging stimuli by sending pain signals to the brain.