help on #4 a- d please

SSESSES Based on the charts in questions 2 and 3 answer the following a) Look at the trend analysis for Company B for year 2018 What do you notice about their increase in net sales and not income over bane year amounts? What could explain this? online b) Looking at the vertical analysis, what you notice about each company's gross profit as a percent of sales? they are both use in common with c) Which company is better managing their operating expenses? (Hint, look at the operating income sales to determine this) Company lockan d) Which company is better controlling ALL OXONDO? (Hint look at the net income sales to determine this) Como Lotion or the 70 2 Prepare a horizontal (trend) analysis and show the percentage increase from base year for the a) Net Sales and b) Gross Profit and c) Net Income of each company for years 2017-2020 Use year 2016 as your base year and report your amounts in the boxes below. Which company has had the most significant change in sales over this time period? Company A - Horizontal Analysis Formula (Current your - Beso year) Base year 2020 2019 2018 2017 2016 For example, to compute the increase in net sales Net Sales 39.66% 16.52% 21% 9.77% I NA Your 2020 (Net Sulos year 2020 Not Solos You 2010) Not Sales Year 2016 Gross Profit 38.81% 16.28% 15% 6.32% INA Net earnings 61 69% ol 39.76% 8.46% INIA Your 2010 Net Sales year 2018 - Not Sale Year 2017 Not Sale Yar 2016 Year 2018 Not Sales year 2018. Net Sales Year 2010 Not Sales Year 2010 Year 2017 Net Sales year 2017 Not Year 2016 Not Sale Year 2018 Company B - Horizontal Analysis 2020 2010 2018 2017 2010 31 32 Net Sales Gross Profit Net samnings 384 31.6490 68 6543 11% 2:39 01 0.68% 24 5.54 NA 0.13% NA 1145 INIA Nettings Necome 3 37 38 39 For each company, compute the following as a percentage of Total Sales a) Gross Profit, b) Operating Income, c) Net Income 3 A& Company A - Vertical Analysis 2020 2019 2018 2017 2016 end 45 46 Gross Profit Operating Income Net Income 33.95% 13.84% 9.74% 34.09% 14.37% 10.20% 34.34% 14.35% 10.28% 34.05% 34.16% 14,55% 14.19% 8,55% 8.41% Formula: Take each line item and divide by Net Sales the For example Gross Prom Year 2020: Gross Profit ynar 2020/ Net Salos year 2020 Year 2010 Gross Pront year 2018/ Not Sale year 2019 Your 2018 Grono Profit your 2018/ Not Sales your 2018 Year 2017 Groms Profit year 2017/ Net Sales year 2017 Year 2016. Gos Proft year 2016 Not Sales year 2010 ibo Nistor 52 Company B. Vertical Analysis 28383*** HSS 2020 2019 2018 2017 2010 altura 55 Med. 56 Gross Profit Operating Income Net Income 33.01% 10.77% 5 51% 31.80% 8.75% 593% 32.12% 5.639 3.25% 32.69% 34,55% 9.60% 8.99% 502% 4.76% HAIP 60