You've been presented the following data in respect of two companies: XYZ and ABC.

XYZ reported revenue of 10,000 and cost of 5,000 for the period under consideration.

Included in the cost is the depreciation expense of 1,000.

ABC reported revenue of 10,000 and a cost of 5,000 for the period under consideration. Included in the cost is the depreciation expense of 2,000.

Assume that there was no outstanding balance in the debtors and creditors accounts for the year and that both companies have the same level of capital.

State which of the company is better. Justify your answer.

You've been presented the following data in respect of two companies: XYZ and ABC. XYZ reported revenue of 10,000 and cost of 5,000 for the period under consideration. Included in the cost is the depreciation expense of 1,000. ABC reported revenue of 10,000 and a cost of 5,000 for the period under consideration. Included in the cost is the depreciation expense of 2,000. Assume that there was no outstanding balance in the debtors and creditors accounts for the year and that both companies have the same level of capital. State which of the company is better. Justify your answer. Select one: a. Neither is better. Both made a profit of 5,000 each for the period. b. ABC is better. The same level of profit was made but ABC generated more cash flow. O C. ABC is better. The same level of profit was made but ABC has more assets thus the greater depreciation d. XYZ is better. The same level of profit was made but XYZ has a lower depreciation expense