Problem 18-01A a, b1 (Part Level Submission) Here are comparative statement data for Duke Company and...

Problem 18-01A a, b1 (Part Level Submission)

Here are comparative statement data for Duke Company and Lord Company, two competitors. All balance sheet data are as of December 31, 2020, and December 31, 2019.

	Duke Company		Lord Company
	2020	2019	2020	2019
Net sales	$1,884,000		$561,000
Cost of goods sold	1,070,112		297,330
Operating expenses	261,876		79,662
Interest expense	7,536		3,927
Income tax expense	52,752		6,171
Current assets	320,500	$311,800	83,200	$78,300
Plant assets (net)	519,000	497,300	139,800	124,500
Current liabilities	65,000	75,000	34,200	30,000
Long-term liabilities	108,800	90,200	29,000	25,600
Common stock, $10 par	501,500	501,500	120,000	120,000
Retained earnings	164,200	142,400	39,800	27,200

(a)

Prepare a vertical analysis of the 2020 income statement data for Duke Company and Lord Company. (Round percentages to 1 decimal place, e.g. 12.1%.)

(b1)

Compute the 2020 return on assets and the return on common stockholders equity for both companies.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

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