Comparative statement data for Lionel Company and Barrymore Company, two comment on profitability. competitors, appear below. All balance sheet data are as of December 31, 2014, and

(LO 4, 5) December 31, 2013.

Lionel Company Barrymore Company _ 2014 _ 2013.10) pp 2014) |) tO Net sales $1,549,035 $339,038 Cost of goods sold 1,053,345 PICS)

Operating expenses 278,825 TITS)

Interest expense 7,745 2,034 Income tax expense 61,960 8,476 Current assets 401,584 $388,020 86,450 $ 82,581 Plant assets (net) 596,920 575,610 142,842 128,927 Current liabilities 65,015 SOG 19,618 14,654 Long-term liabilities 102,500 84,000 HORA 11,989 Common stock, $5 par 578,765 578,765 137,435 137,435 Retained earnings 252,224 225359 55,528 47,430 Instructions

(a) Prepare a vertical analysis of the 2014 income statement data for Lionel Company and Barrymore Company in columnar form.

(b) 22> Comment on the relative profitability of the companies by computing the return on assets and the return on common stockholders’ equity ratios for both companies.