Solve this both a and b

2:49 22 20-07-26 Page 6 of 13 counting 11 WCLN.ca* 6. Given below are the income statements for two companies in the same line of business. Income Statement Year Ended December 31, 20-- Company A Company B Revenue Sales $197 000 % $421,000 % Expenses Automotive $ 40 200 $ 80,270 % Expense Bank Interest 3 500 % 27,050 % Expense Rent 12 000 % 30,000 % Expense Wages 86 750 214,860 Expense Other 1 800 % 10,900 % Expenses Total $144 250 % $363,080 % Expenses Net Income $ 52 750 % $ 57,920 % a) In the chart above convert the above statements to common-size form. b) Suppose that you are an investor interested in purchasing one of these two companies. Evaluate the two companies, giving reasons. State which company appears to be the better buy. What additional important data do you require before you can make a final decision? 20-07-26 Page 7 of 13 wcln.ca