would these differing standards affect your interpretation of WestJet's historical performance P18-2A Comparative income statement data for Chen Inc. and Chuan Ltd., two competitors, are shown below for the year ended December 31, 2017. Prepare vertical an calculate profitabil and compare. (LO ER 18 Financial Statement Analysis 286,270 1,252 Chen Chuan $1,849,035 $539,038 Net sales 1,060,490 338,006 Cost of goods sold 788,545 201,032 Gross profit 502,275 89,000 Operating expenses 112,032 Profit from operations 6,800 Interest expense 279,470 110,780 Profit before income tax 83,841 27,695 Income tax expense $ 195,629 $ 83,085 Profit Additional information: Average total assets $ 894,750 $251,313 Average total shareholders' equity 724,430 186,238 Instructions (a) Using vertical analysis, calculate the percentage of the base amount of the income statement for each company (b) Calculate the gross profit margin, profit margin, asset turnover, return on assets, and return on equity ratios for 2017 for each company. (c) Using the information calculated in parts (a) and (b), compare the profitability of each company. (d) Is your comparison in part (c) an intracompany comparison or an intercompany comparison? Explain. TAKING IT FURTHER. How is your assessment of profitability affected by the differing sizes of the two companies if at all? Explain. P18-3A Horizontal and vertical analysis of the income statement for a retail camnan calling ladine clothing is