Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

image text in transcribed

Here are comparative statement data for Pharoah Company and Cullumber Company, two competitors. All balance sheet data are as of December 31, 2017, and December 31, 2016. Pharoah Company Cullumber Company 2017 2016 2017 2016 Net sales $1,924,000 $563,000 Cost of 1,067,000 281,000 goods sold Operating 254,000 91,000 expenses Interest 8,000 3,000 expense Income tax expense 71,700 35,000 622,612 $596,703 159,172 $ 151,782 1,006,188 955,000 266,880 240,301 Current assets Plant assets (net) Current liabilities Long-term liabilities 126,681 144,807 67,515 57.837 217,721 171,900 56,574 47,750 955,000 955,000 229,200 229,200 Common stock, $10 par Retained earnings 329,399 279,996 72,763 57,296 Prepare a vertical analysis of the 2017 income statement data for Pharoah Company and Cullumber Company. (Round all ratios to 1 decimal place, e.g. 2.5%.) Condensed Income Statement For the Year Ended December 31, 2017 Pharoah Company Dollars Percent Cullumber Company Dollars Percent $563,000 V $1,924,000 % % 1,067,000 % 281,000 % 857.000 % 282.000 % 254,000 % 91,000 % 603,000 % 191,000 % 8,000 % 3,000 % 595,000 % 188,000 71,700 35,000 $523,300 % $153,000 % LINK TO TEXT LINK TO TEXT Compute the 2017 return on assets and the return on common stockholders' equity for both companies. (Round all ratios to 1 decimal place, e.g. 2.5%.) Pharoah Company Cullumber Company Return on assets % % Return on common stockholders' equity % %

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

The Why And How Of Auditing Auditing Made Easy

Authors: Charles B. Hall

1st Edition

0578519739, 978-0578519739

More Books

Students also viewed these Accounting questions

Question

CL I P COL Astro- L(1-cas0) Lsing *A=2 L sin(0/2)

Answered: 1 week ago