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Based on the below simplified income statements, which Company had the better year.. . and why? A B C Sales 100 105 90 Cost of
Based on the below simplified income statements, which Company had the better year.. . and why?
| A | B | C | |
| Sales | 100 | 105 | 90 |
| Cost of Goods Sold | 75 | 50 | 80 |
| Gross Income | 25 | 55 | 10 |
| Operating Expense (Selling, R&D, Admin) | 10 | 30 | 20 |
| Earnings Before Interest & Taxes (EBIT) | 10 | 25 | -10 |
| Interest Expense | 1 | 20 | 0 |
| Extraordinary income/(Expense) | 0 | 0 | 25 |
| Tax | 2 | 2 | 0 |
| Net Income | 7 | 3 | 15 |
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