Company ABC Income Statement (in thousands) Revenue $150 Cost of goods sold $23 Company XYZ Income Statement (in thousands) Revenue $250 Cost of goods sold $25 $80 $25 $180 $40 Gross profit Operating expenses Operating profit Interest expense Gross profit Operating expenses Operating profit Interest expense $70 $5 $150 $15 Earnings before taxes Earnings before taxes Tax expense $50 $20 $30 Tax expense $150 $50 $80 Net income Net income Calculate the Net Profit Margin for each company and comment on which one is in a better position. Please type your answer below: Exercise 2 (4 marks) Jewellery Company Grocery Store Company Revenue Cost of Goods Sold Gross Profit Operating Expenses Operating Profit Interest Expense Earnings Before Taxes Tax Expense Net Income $5,000 $800 $4,200 $500 $3,700 $185 $3,515 $1,750 $1,765 Revenue Cost of Goods Sold Gross Profit Operating Expenses Operating Profit Interest Expense Earnings Before Taxes Tax Expense Net Income $40,000 $32,000 $8,000 $4,000 $4,000 $200 $3,800 $1,900 $1,900 Net Profit Margin 35.30% Net Profit Margin 4.75% Compare the Net Profit Margins of these two companies and discuss the implications. Please type your answer below