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a. Using vertical analysis, calculate the percentage of the base amount of the income statement for each company, b. Calculate the gross profit margin,
a. Using vertical analysis, calculate the percentage of the base amount of the income statement for each company, b. Calculate the gross profit margin, profit margin, asset turnover, return on assets, and return on equity ratios for 2021 for each company. e. Using the information calculated in parts (a) and (b), compare the profitability of each company. d. Is your comparison in part (e) an intracompany comparison or an intercompany comparison? Explain. Net sales Cost of goods sold Gross profit Operating expenses Chen $1,849,035 Chuan $539,038 1,060,490 338,006 788,545 201,032 502,275 89,000 Profit from operations 286,270 112,032 Interest expense 6,800 1,252 Profit before income tax Income tax expense 279.470 83,841 110,780 27.695 Profit $ 195,629 $ 83,085 Additional information: Average total assets $ 894,750 $251,313 Average total shareholders' equity 724,430 186,238
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