Two firms, Firm A and Firm B, present the following data in their Income Statements: Income Statement (in simplified form) Sales Revenue CGS Gross Profit SGA Expenses Operating Income Financial Income Non-Operating Income Income Before Taxes 1/1-31/12/2021 1/1-31/12/2021 Firm A Firm B 300,000 300,000 -180,000 -100,000 120,000 200,000 -20,000 -180,000 100,000 20,000 0 0 0 80,000 100,000 100,000 Comment on the income statement items for both firms. What are potential weaknesses of each firm's performance? Which firm would be your investment choice? -3-