Answer Happy

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 2021 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 (e) an intracompany comparison or an intercompany comparison? Explain. Chen Chuan Net sales $1,849,035 $539,038 1,060,490 338,006 Cost of goods sold Gross profit 788,545 201,032 Operating expenses 502,275 89,000 Profit from operations 286,270 112,032 Interest expense 6,800 1,252 Profit before income tax 279.470 110,780 83,841 27,695 Income tax expense Profit $ 195,629 $ 83,085 Additional information: Average total assets $ 894.750 $251.313 Average total shareholders' equity 724,430 186,238