b. Compare the Horizontal and Vertical Analysis (part a) for both companies and answer the following questions. (3 point each = 15 points) 1. Which company had the higher increase in total revenue from 2019 to 2020? 2. Which company had the higher increase in net income from 2019 to 2020? 3. For every dollar of revenue, Amazon has a profit of ____________? For every dollar of revenue, Apple has a profit of ____________? 4. Cost of Revenue (COGS) is what percentage of total revenue for the year 2020 for Apple? And for Amazon?

1 2 1. Which company had the higher increase in total revenue from 2019 to 2020? 3 Hint: See Horizontal Analysis of both companies for questions 1 and 2 4 5 6 2. Which company had the higher increase in net income from 2019 to 2020? 7 8 9 3. In 2020, for every dollar of revenue, Amazon has a profit of ? For every dollar of revenue, Apple has a profit of 10 Hint: See Vertical Analysis for both companies, Net Income Line 11 Amazon $ 12 Apple $ 13 14 4. Cost of Revenue (COGS) is what percentage of total revenue for the year 2020 for Amazon? And for Apple? 15 Hint: See Vertical Analysis for both companies, Net Income Line 16 Amazon 17 Apple 1 2 1. Which company had the higher increase in total revenue from 2019 to 2020? 3 Hint: See Horizontal Analysis of both companies for questions 1 and 2 4 5 6 2. Which company had the higher increase in net income from 2019 to 2020? 7 8 9 3. In 2020, for every dollar of revenue, Amazon has a profit of ? For every dollar of revenue, Apple has a profit of 10 Hint: See Vertical Analysis for both companies, Net Income Line 11 Amazon $ 12 Apple $ 13 14 4. Cost of Revenue (COGS) is what percentage of total revenue for the year 2020 for Amazon? And for Apple? 15 Hint: See Vertical Analysis for both companies, Net Income Line 16 Amazon 17 Apple