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