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

image text in transcribedimage text in transcribed

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. Lord Company 2020 2019 Net sales 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 Duke Company 2020 2019 $1,800,000 1,090,800 273,600 9,000 54,000 322,000 $310,600 520,500 500,900 65,200 74,400 108,800 89,000 $561,000 297,330 78,540 4,488 6,732 82,900 139,200 36,200 28,000 $78,300 125,100 29,200 26,000 502,000 166,500 502,000 146,100 117,000 40,900 117,000 31,200 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 Duke Company Lord Company Dollars Percent Dollars Percent Net Sales 1,800,000 100% 561,000 Cost of Goods Sold 1,090,800 60.60 297,330 Gross Profit 709,200 39.40 263,670 Operating Expenses 273,600 15.20 78,540 Income From Operations Other Expenses and Losses Interest Expense Income Before Income Taxes Income Tax Expense Net Income / (Loss) 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%.) Duke Company Lord Company Return on assets Return on common stockholders' equity Click if you would like to Show Work for this question: Open Show Work

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

Auditing The Art and Science of Assurance Engagements

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Joanne C. Jones

14th Canadian edition

134613112, 134835018, 9780134885254 , 978-0134613116

More Books

Students also viewed these Accounting questions

Question

5. Identify and describe nine social and cultural identities.

Answered: 1 week ago

Question

=+ Who are the buyers/users of the products abroad?

Answered: 1 week ago