Question

1. Tucker Grocery operates a small corner grocery market in Berryville, AR where they opened a second store on the far side of town on August 2, 2016. On Dec. 31, 2016 they closed their books on their second year in business. Excerpts from their financial statements are shown below.

Stubb’s Grocery has been operating a small grocery store in Berryville for two generations. Excerpts from their financial statements are also provided below.

Please calculate the overall and comparative sales increases for both companies and compare and contrast the numbers. Comment on the growth and health of each company.

Tucker Grocery					Stubb’s Grocery
Income Statement					Income Statement
Dec. 31, 2016					Dec. 31, 2016
	2015	2016				2015	2016
Sales Store 1	52,000	52,780			Sales Store 1	43,000	45,150
Sales Store 2	NA	21,240

Answer 1

Tucker company's overall sales for both stores combined has grown by 42.35% which is a decent growth in one year. however, Store 1's sales have only grown by 1.5% which is very marginal and the major growth in overall sales is only contributed due to the new store 2.

Stubbs Grocery has had an increase of 5% which is very minimal given the fact that is has been operating for over two generations.