Your boss has given you last year’s income statements of two companies and asked you to recommend one in which your company should invest. The income statements include the following information (in thousands):

Amalgamated Snacks Gourmet Goodies Net sales $1,360,000 $2,000 Cost of goods sold 884,000 1,360 Selling expenses 205,294 312 General and administrative expenses 114,541 110 Net income 156,165 218 Required: Based on this information alone, which company would be the better investment choice? Explain your answer. What other information would you like to have in order to make a more informed decision? How would this information help you recommend the one in which you think your company should invest?  lop74