Reference no: EM132516857

The following information are given for ABC Corporation and XYZ Company for the month of January 2020:

                                            ABC Corp.                               XYZ Co.

Sales                                     1,500,000                         300,000

Less - Cost of Sales                   900,000                         150,000

Gross Profit on Sales                  600,000                         150,000

Less - OPerating Expense             375,000                       90,000

Net Income                                225,000                      60,000

Question 1: Analyze the performance of the two firms using:

1.1) Vertical and Horizontal Analysis

1.2) Financial Ratio Analysis