Partial Income Statements of Company a and Company B Are

Multiple Choice

Partial income statements of Company A and Company B are provided below: $$\begin{array}{l}\begin{array} { | l r r | } \hline { \text { Company A } } \\\hline & & \\\text { Revenue } && \$ 80,000 \\\text { Expenses: } & \$ 5,000 & \\\text { Utilities Expense } & 15,500 & \\\text { Salaries Expense } & \underline{3,200} & \\\text { Rent Expense } & & \underline{23,700} \\ \text { Total Expenses } & &\underline{ \$ 56,300} \\\hline\end{array}\\\\\begin{array} { | l r r | } \hline { \text { Company B } } & \\\hline & & \\\text { Revenue } && \$ 50,000 \\\text { Cost of Goods Sold: } & & \\\text { Beginning Inventory } & \$ 4,000 & \\\text { Purchases and Freight In } & 23,000 & \\\text { Ending Inventory } &\underline{ - 5,500 }& \\ \text { Cost of Goods Sold } & & \underline{21,500} \\ \text { Gross Profit } & & \underline{\$ 28,500} \\\hline\end{array}\end{array}$$ Which of the following statements is true?

A) Company A is a merchandising company.
B) Company B is a manufacturing company.
C) Company A is a manufacturing company.
D) Company A is a service company.