I need help on the second part b1

Problem 13-1A (Part Level Submission)

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

Crane Company

Sheridan Company

2017

2016

2017

2016

Net sales$1,882,000$610,000Cost of goods sold1,062,000297,000Operating expenses255,00083,000Interest expense7,1003,400Income tax expense69,00034,000Current assets537,859$515,477137,504$131,121Plant assets (net)869,220825,000230,551207,590Current liabilities109,436125,09558,32449,964Long-term liabilities188,084148,50048,87341,250Common stock, $10 par825,000825,000198,000198,000Retained earnings284,559241,88262,85849,497

(a)

Your answer is correct.

vertical analysis of the 2017 income statement data for Crane Company and Sheridan Company.(Round all ratios to 1 decimal place, e.g. 2.5%.)

Condensed Income Statement

For the Year Ended December 31, 2017

Crane Company

Sheridan Company

Dollars

Percent

Dollars

Percent

Other Expenses and LossesCost of Goods SoldIncome From OperationsRetained Earnings, January 1Interest ExpenseRetained Earnings, December 31Net Income / (Loss)Gross ProfitDividendsOperating ExpensesOther Revenues and GainsIncome Before Income TaxesIncome Tax ExpenseExpensesSales RevenuesTotal ExpensesTotal RevenuesNet SalesTotal Operating Expenses

$1,882,000

%

$610,000

%

Total Operating ExpensesInterest ExpenseTotal RevenuesSales RevenuesNet Income / (Loss)Income Tax ExpenseExpensesRetained Earnings, January 1Income Before Income TaxesRetained Earnings, December 31Operating ExpensesOther Revenues and GainsCost of Goods SoldTotal ExpensesNet SalesGross ProfitOther Expenses and LossesIncome From OperationsDividends

1,062,000

%

297,000

%

Income From OperationsOther Expenses and LossesCost of Goods SoldInterest ExpenseNet Income / (Loss)Other Revenues and GainsRetained Earnings, January 1Income Before Income TaxesTotal Operating ExpensesTotal RevenuesDividendsIncome Tax ExpenseRetained Earnings, December 31Total ExpensesExpensesSales RevenuesGross ProfitNet SalesOperating Expenses

820,000

%

313,000

%

Net SalesSales RevenuesRetained Earnings, December 31Income From OperationsOther Revenues and GainsTotal ExpensesIncome Tax ExpenseTotal RevenuesOperating ExpensesExpensesOther Expenses and LossesGross ProfitRetained Earnings, January 1Total Operating ExpensesIncome Before Income TaxesCost of Goods SoldInterest ExpenseDividendsNet Income / (Loss)

255,000

%

83,000

%

ExpensesNet Income / (Loss)Retained Earnings, December 31Retained Earnings, January 1Gross ProfitTotal Operating ExpensesInterest ExpenseNet SalesTotal RevenuesOperating ExpensesIncome Before Income TaxesDividendsSales RevenuesTotal ExpensesIncome Tax ExpenseOther Expenses and LossesOther Revenues and GainsIncome From OperationsCost of Goods Sold

565,000

%

230,000

%

Gross ProfitTotal ExpensesDividendsIncome Before Income TaxesIncome From OperationsTotal Operating ExpensesOperating ExpensesExpensesRetained Earnings, December 31Other Revenues and GainsSales RevenuesNet SalesRetained Earnings, January 1Other Expenses and LossesCost of Goods SoldNet Income / (Loss)Total RevenuesInterest ExpenseIncome Tax Expense

Retained Earnings, January 1DividendsCost of Goods SoldRetained Earnings, December 31Income Tax ExpenseNet SalesExpensesTotal RevenuesOther Revenues and GainsTotal Operating ExpensesInterest ExpenseIncome Before Income TaxesGross ProfitOperating ExpensesOther Expenses and LossesIncome From OperationsNet Income / (Loss)Sales RevenuesTotal Expenses

7,100

%

3,400

%

Interest ExpenseIncome Before Income TaxesOther Expenses and LossesDividendsTotal Operating ExpensesTotal RevenuesTotal ExpensesIncome From OperationsGross ProfitOther Revenues and GainsCost of Goods SoldSales RevenuesOperating ExpensesIncome Tax ExpenseNet SalesExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31

557,900

%

226,600

%

Sales RevenuesIncome Tax ExpenseRetained Earnings, December 31Other Expenses and LossesOther Revenues and GainsGross ProfitInterest ExpenseOperating ExpensesIncome From OperationsTotal ExpensesCost of Goods SoldTotal Operating ExpensesDividendsExpensesNet Income / (Loss)Income Before Income TaxesRetained Earnings, January 1Total RevenuesNet Sales

69,000

%

34,000

%

Net Income / (Loss)Operating ExpensesTotal RevenuesIncome Tax ExpenseTotal Operating ExpensesGross ProfitIncome Before Income TaxesOther Expenses and LossesCost of Goods SoldExpensesNet SalesInterest ExpenseOther Revenues and GainsRetained Earnings, January 1DividendsIncome From OperationsRetained Earnings, December 31Sales RevenuesTotal Expenses

$488,900

%

$192,600

%

(b1)

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%.)

Crane Company

Sheridan Company

Return on assets

%

%

Return on common stockholders' equity

%

%