PROFITABILITY What is profitability? Use the following information to calculate the profitability measure known as the Net Margin" for each company. Company A Company B Net Income $3.5 M $1 B Total Sales $5M $2.5 B Net Margin = Net Income / Total Sales Which company has the more favorable Net Margin ratio, and why? Which financial statement(s) would you need in order to find this information on your own? (Circle all that apply) Balance Sheet Income Statement Cash Flow Statement