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EFFECT OF BUSINESS STRATEGY ON COMMON-SIZE INCOME STATEMENT. Access the investor relations or corporate information section of the web- sites of Apple Computer (https://www.apple.com) and Dell (https://www.dell.com). Study the strategies of each firm. Examine the following common-size income statements and indicate which firm is likely to be Apple Computer and which is likely to be Dell. Explain your reasoning. Indicate any percentages that seem inconsistent with their strategies.
Firm A
Firm B
Sales
100.0%
Cost of Goods Sold
(82.1)
(59.9)
Selling and Administrative
(11.6)
(9.7)
Research and Development
(1.1)
(3.1)
Income Taxes
(1.4)
(8.9)
All Other Items
0.2
0.8
Net Income
4.1%
19.2%
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