question 1

Corp Z Income Statements Corp A Revenue 100.0% 100.0% Cost of revenue 70.5% 75.8% 29.5% 24.2% Gross profit Operating expenses 23.7% 23.8% Operating income 5.8% 0.4% Taxes 1.2% 0.1% Net income 4.6% 0.3% Corp A Corp Z 26.0% 49.1% Balance Sheets Current assets Net fixed assets Total 74.0% 50.9% 100.0% 100.0% Current liabilities 28.7% 44.8% 34.9% 45.7% Long-term liabilities Stockholders' Equity Total 36.4% 9.5% 100.0% 100.0% Which statement is correct? Corporation Z is better at cost management when comparing common-size income statements. O Corporation A is better at cost management when comparing common-size income statements Corporation Z is better at cost management when comparing common-size balance sheets. Corporation A is better at cost management when comparing common-site balance sheets