(Solution) - Comparative income statements for two video game developers Act -(2025 Original AI-Free Solution)

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Comparative income statements for two video game developers, Activision, Inc., and Electronic Arts, Inc., are provided for a recent fiscal year as follows:

The cost of goods sold represents the total cost of manufacturing and packaging a game, plus royalties and licenses paid to independent game developers. Product development costs are the costs incurred to design games.
1. Prepare common-sized income statements for both companies.
2. Interpret the significant differences in these common-sizedstatements.