Toy Factory Income Statement: Vertical Analysis Company A 100% 23% Company B 100% 21% 77% 79% 24% Sales revenues Less: Cost of goods sold Gross profit Less: Operating expenses Operating income Less: Interest expense Income before income taxes Less: Income tax expense Net income 16% 61% 55% 58% 3% 55% 51% 4% 47% Which company is more profitable based on this common - size statement? O A. Company A O B. Company B O C. Company A and B are equally profitable OD. Cannot determine from information given