The following are income statements of two companies that are both in the fast food industry. All
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Question:
The following are income statements of two companies that are both in the fast food industry. All amounts are in s and are for the year ended December
Company A Company B
public companyprivate company
Revenue $ $
Cost of goods sold
Gross profit
Expenses
Labour expenses
Utilities expenses
Other operating expenses
Total operating expenses
Profit from operations
Interest expense
Income tax expense
Profit $ $
Instructions
Using vertical analysis determine which corporation is the more profitable and identify the most significant cause of the difference.
Related Book For
Intermediate Accounting
ISBN: 978-1119048534
11th Canadian edition Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
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