Comparative statement data for Farris Company and Ratzlaff Company, two competitors, appear below. All balance sheet data are as of December 31, 2015, and December 31, 2014.

Instructions
(a) Prepare a vertical analysis of the 2015 income statement data for Farris Company and Ratzlaff Company in columnar form.
(b) Comment on the relative profitability of the companies by computing the return on assets and the return on common stockholders’ equity for bothcompanies.

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Ratzlaff Company 2015 Farris Company 2014 2015 1,549,035 1,080,490 302,275 2014 $339,038 241,000 79,000 2,252 6,650 Cost of goods sold Operating expenses Interest expense Income tax expense Current assets Plant assets (net) Current liabilities Long-term liabilities Common stock, $10 par Retained earnings 2 8,980 54,500 325,975$312,410 521,310 500,000 75,815 90,000 500,000 146,595 65,325 108,500 500,000 173,460 139,728 35,348 29,620 120,000 38,096 83,336 79,467 125,812 30,281 25,000 120,000 29,998