Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 $1,812,000 $559,000 Cost of goods sold 1,020,156 297,388 Operating expenses 269,988 78,819 Interest expense 9,060 4,472 Income tax expense 54,360 6,708 Current assets 324,000 $313,600 83,200 $78,900 Plant assets (net) 521,400 499,400 139,200 124,500 Current liabilities 65,600 75,800 35,800 29,200 Long-term liabilities 108,400 89,000 28,800 25,400 Common stock, $10 par 497,000 497,000 124,500 124,500 Retained earnings 174,400 151,200 33,300 24,300 Your answer is correct. 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%) Condensed Income Statement For the Year Ended December 31, 2020 ars Duke Company 1812000 1020156 791844 269988 521856 9060 512796 54340 458436 Percent Lord Company Dollars Percent 100.0 % $ 559000 563 % 297388 43.7 % 261612 14.9 1% 78819 28.8 % 182793 0.5 1% 4472 28.3 % 178321 3.0 1% 6708 26.3 % 171613 53.2 14.1 100.0 0.8 12 46.8 32.3 31.5 30.3 (b1) Your answer is partially correct. Compute the 2020 return on assets and the return on common stockholders' equity ratios for both companies. (Round answers to 1 decimal place, e.g. 12.1%.) Return on assets Return on common stockholders' equity Duke Company 55.2 % do Lord Company 80.6 92.2 % 137.8 do % do %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

Why does sin 2x + cos2x =1 ?

Answered: 1 week ago

Question

What are DNA and RNA and what is the difference between them?

Answered: 1 week ago

Question

Why do living creatures die? Can it be proved that they are reborn?

Answered: 1 week ago