Here are comparative statement data for Night Company and Day Company, two competitors. All balance sheet data

Question:

Here are comparative statement data for Night Company and Day Company, two competitors. All balance sheet data are as of December 31, 2007, and December 31, 2006.

Instructions
a. Prepare a vertical analysis of the 2007 income statement data for Night Company and Day Company.
b. Comment on the relative profitability of the companies by computing the return on assets and the return on common stockholders' equity ratios for bothcompanies.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...