Problem 9-1 (Part Level Submission) Here are comparative statement data for Sandhill Company and Carla Vista Company, two competitors. All balance sheet data are as of December 31, 2017, and December 31, 2016. Sandhill Company 2017 2016 2017 Net sales Cost of goods sold Operating expenses Interest expense Income tax expense $1,906,000 1,072,000 271,000 7,200 Carla Vista Company 2016 $581,000 295,000 93,000 2,000 73,300 29,000 Current assets Plant assets (net) Current liabilities Long-term liabilities 697,587 1,127,352 141,936 243,939 $668,557 1,070,000 162,244 192,600 178,339 299,018 75,645 63,387 $ 170,059 269,238 64,801 53,500 1,070,000 1,070,000 256,800 256,800 Common stock, $10 par Retained earnings 369,064 313,713 81,525 64,196 (a) Your answer is correct. Prepare a vertical analysis of the 2017 income statement data for Sandhill Company and Carla Vista Company. (Round all ratios to 1 decimal place, e.g. 2.5%.) Condensed Income Statement For the Year Ended December 31, 2017 Sandhill Company Dollars Percent Carla Vista Company Dollars Percent Net Sales $1,906,000 100 % $581,000 100 % (a) Your answer is correct. Prepare a vertical analysis of the 2017 income statement data for Sandhill Company and Carla Vista Company. (Round all ratios to 1 decimal place, e.g. 2.5%.) Condensed Income Statement For the Year Ended December 31, 2017 Sandhill Company Dollars Percent Carla Vista Company Dollars Percent Net Sales $1,906,000 100 % $581,000 100 % Cost of Goods Sold 1,072,000 56.21 % 295,000 50.8 % Gross Profit 834,000 43.81 % 286,000 49.21 % Operating Expenses 271,000 14.21 % 93,000 16.00 % Income From Operations 563,000 29.5% 193,000 33.21 % Other Expenses and Losses Interest Expense 7,200 41 % 2,000 31 % Income Before Income Taxes 555,800 29.2 % 191,000 32.9 % Income Tax Expense 73,300 3.8 % 29,000 5.0 % Net Income / (Loss) $482,500 25.3 % $162,000 27.9 % LINK TO TEXT LINK TO TEXT (61) 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%.) Sandhill Company Carla Vista Company Return on assets % % Return on common stockholders' equity % % LINK TO TEXT LINK TO TEXT