[FONT=Times New Roman][SIZE=3][COLOR=#000000]
[/COLOR][/SIZE][/FONT][COLOR=#000000]Which company is doing better,
company A or B, and why, for the past year? Explain/support your answer.[/COLOR]
[FONT=Times New Roman][SIZE=3][COLOR=#000000]
[/COLOR][/SIZE][/FONT][COLOR=#000000]Company A has $100 million in Sales
Revenue and has $2 million in Net Income (after all taxes and expenses) for the
past year.[/COLOR]
[FONT=Times New Roman][SIZE=3][COLOR=#000000]
[/COLOR][/SIZE][/FONT][COLOR=#000000]Company B has $10 million in Sales
Revenue and has $1 million in Net Income (after all taxes and expenses)
for the past year.[/COLOR]
[FONT=Times New Roman][SIZE=3][COLOR=#000000]
[/COLOR][/SIZE][/FONT][COLOR=#000000]They have identical Assets,
Liabilities and Shareholder's Equity. Assume they are in the same
industry and same region of the country.[/COLOR]
[FONT=Times New Roman][SIZE=3][COLOR=#000000]
[/COLOR][/SIZE][/FONT]