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Select two stocks in an industry of your choice and perform a common size income statement analysis over a two-year period.
Discuss which firm is more cost-effective.
Discuss the relative year-to-year changes in gross profit margin, operating profit margin, and net profit margin for each company. (2.5 points)

You may consolidate data into the summary fields:
Company A: (name) Company B: (name)
Year 1 % Year 2 % Year 1 % Year 2 %
Net Sales
Cost of Goods sold
Gross profit

SG&A
EBIT (Op. margin)

Interest income
Interest expense
Other income (non-subsidiary)
EBT (Op. income before tax)

Income tax

Net Income

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Solution Summary

Perform a common size income statement analysis for two years

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Please refer to attachment:

Company: Microsoft and Google

Analysis:

As we can see from the attached financial statements of the two companies, Google has been able to outperform Microsoft in terms of top line revenues. Microsoft's revenues and profitability ...

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  • BComm, University of Delhi
  • Post Graduate Diploma in Management (Equivalent to MBA), All India Management Association
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