Here are comparative statement data for Duke Company and Lord Company, two competitors. All balance sheet data are as of December 31, 2017, and December 31, 2016.

Duke Company Lord Company 2017 2016 2017 2016 Net sales $1,849,000 $546,000 Cost of goods sold 1,063,200 289,000 LO15 Operating expenses 240,000 82,000 Interest expense 6,800 3,600 Income tax expense 62,000 28,000 Current assets 325,975 $312,410 83,336 $ 79,467 Plant assets (net) 526,800 500,000 139,728 125,812 Current liabilities 66,325 75,815 35,348 30,281 Long-term liabilities 113,990 90,000 29,620 25,000 Common stock, $10 par 500,000 500,000 120,000 120,000 Retained earnings 172,460 146,595 38,096 29,998 Instructions

(a) Prepare a vertical analysis of the 2017 income statement data for Duke Company and Lord Company.

(b) Comment on the relative profi tability of the companies by computing the 2017 return on assets and the return on common stockholders’ equity for both companies.