Yuebua Telecom Inc. and Guangxin Technology Ltd. are two competing ICT corporations based in Shenzhen Special Economic Zone, China. Both companies' stocks are traded at Shenzhen Stock Exchange. The comparative financial statements of Yuebua and Guangxin for the last four years (2016 2019) are shown in the Attachments 1 and 2:- Instructions: 3. Which corporation do you think would be a better investment if you were planning to purchase common shares? Why? (20%) Attachment 1: Comparative Statement of Financial Position Comparative Statement of Financial Position Yuehua Telecom Inc. and Guangxin Technology Ltd. At December 31 of the Years 2016, 2017, 2018, and 2019 (Currency Unit in Million Chinese Yuan, 1,000,000) Yuehua Telecom Inc. Guangxin Technology Ltd. 2019 2018 2017 2016 2019 2018 2017 2016-2 Assets Current Assets Non-current Assets, at Carrying Amount Total Assets 185 535 720 165 397 562 155 392 547 140 378 518 480 599 1.079 450 603 1.053 410 572 982 38122 6014e 982-e 160 135 130 110 272 251 170 180 e Liabilities Current Liabilities Bonds Payable 12% Due in 10 Years 15% Due in 7 Years Total Liabilities 120 0 0 0 400 672 400 651 400- 570 400 e 58044 280 135 130 110 1. 1. 1. 200 200 200 200 2002 200 200 200-e Shareholders' Equity Share Capital Preferred: 200,000 shares each Common Yuehua: 100,000 shares Guangxin: 50,000 shares Retained Earnings Total Equity Total Liabilities and Equity 100 100 100 100 140 440 720 127 427 562 117- 417 547 108 408 518 502 1572 4072 1.079 50 152 402 1.053 50 162 412 982 504 1522 402-2 982 e __ Attachment 2: Comparative Income Statement Comparative Income Statement Yuehua Telecom Inc. and Guangxin Technology Ltd. For theYearsEnded atDecember 31:2016, 2017, 2018, 2019 (Currency Unit in Million Chinese Yuan, 1,000,000) Yuehua Telecom Inc. +d Guangxin Technology Ltd. +7 2019 20187 2017] 2016 2019- 2018 2017 2016 7 330 105 2257 Sales Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Interest Expense Income (Loss) before Income Taxes l Income Taxes [(Recovered]]*