anies in the same line of 5. Given below are the income statements for two companies in the sam business INCOME STATEMENTS YEAR ENDED DECEMBER 31, 20 Company A Company B $197 000 $421 000 Revenue Sales Expenses Automotive Expense Bank Interest Expense Rent Expense Wages Expense Other Expenses Total Expenses $ 40 200 3 500 12 000 86 750 I 800 $144 250 $ 52 750 $ 80 270 27 050 30 000 214 860 10 900 $363 080 $ 57 920 Net Income A. In your Workbook, 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? Exercise 5, p. 268 Income Statements Year End December 31, 20- Company B Company A $421 000 Revenue Sales $197 000 Expenses Automotive Expense Bank Interest Expense Rent Expense Wages Expense Other Expenses Total Expenses $ 40 200 3 500 12 000 86 750 1 800 $144 250 $ 80 270 27 050 30 000 214 860 10 900 $363 080 RRRRRRRR Net Income $ 52 750 $ 57 920 B