Answered step by step
Verified Expert Solution
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 | $1,872,000 | $561,000 | ||||||
Cost of goods sold | 1,070,784 | 297,330 | ||||||
Operating expenses | 265,824 | 78,540 | ||||||
Interest expense | 9,360 | 3,927 | ||||||
Income tax expense | 54,288 | 6,732 | ||||||
Current assets | 323,500 | $310,300 | 82,300 | $79,200 | ||||
Plant assets (net) | 522,000 | 497,600 | 138,900 | 125,400 | ||||
Current liabilities | 64,800 | 74,400 | 36,600 | 29,400 | ||||
Long-term liabilities | 108,200 | 89,600 | 29,000 | 25,200 | ||||
Common stock, $10 par | 497,500 | 497,500 | 120,000 | 120,000 | ||||
Retained earnings | 175,000 | 146,400 | 35,600 | 30,000 |
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 | enter a percentage number rounded to 1 decimal place | % | enter a percentage number rounded to 1 decimal place | % | ||
Return on common stockholders equity | enter a percentage number rounded to 1 decimal place | % | enter a percentage number rounded to 1 decimal place | % |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started