In this particular question, and only in the case of statement 1 alone, we can indeed cross-multiply the terms because both $x$ and $y$ are given to us as positive numbers, and this means that all of the terms in the inequality are positive. However, if statement 1 was stated as $x \lt y$, then statement 1 alone would no longer be sufficient.

Please watch my video below that illustrates this point with a slightly different example:

Ricky Park says

why dont you do cross multiplication to simplify?

GMAT Quantum says

Hi Ricky,

In this particular question, and only in the case of statement 1 alone, we can indeed cross-multiply the terms because both $x$ and $y$ are given to us as positive numbers, and this means that all of the terms in the inequality are positive. However, if statement 1 was stated as $x \lt y$, then statement 1 alone would no longer be sufficient.

Please watch my video below that illustrates this point with a slightly different example:

Dabral