Problems: Set A Prepare vertical analysis and comment on profitability P18.1A (LO 2, 3) Writing 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. 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 $1,849,000 1,063,200 240,000 6,800 62,000 325,975 $312,410 526,800 500,000 66,325 75,815 113.990 90.000 500,000 500,000 172,460 146,595 Lord Company 2020 2019 $546,000 289,000 82.000 3,600 28,000 83,336 $ 79,467 139,728 125,812 35.348 30,281 29,620 25,000 120,000 120,000 38,096 29,998 Instructions a. Prepare a vertical analysis of the 2020 income statement data for Duke Company and Lord Company b. Comment on the relative profitability of the companies by computing the 2020 return on assets and the return on common stockholders' equity for both companies. Compr e from baloncest P18.2A (LO) The comparative statements of Wahlberg Company are presented here. Wallberg Company Income Stats For the Year Ended December 31 2019 SI. 540 1.05R 540 832.000 500.000 $1.750 500 1.006000 74490 479.000 265_500 12000 Net als Cost of goods sold Gross profit Selling and administrative expenses Income from operations Other expenses and losses Interest expense Income before income taxes Income tax expe Net income 22000 310.000 92.000 2000 245 500 73 $ 172.500 $218.000 Wallberg Company Balance Sheets December 31 20.30 Ats Current assets $ 640 50.000 0.100 74.000 117.800 125.000 115.900 377.00 649 00 SMO SR52.00 S1026.900 Debt investments (short-term) Accounts receivable Inventory Total current assets Plantas (net) Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable Income taxes payable Total current liabilities Bonds payable Totalities Stockholders' equity Common stock (SS par) Retained earings Total stockholders' equity Total liabilities and stockholders' equity o $ 160,000 43500 200 DO 220.000 423.500 S145.400 42.000 117.00 200.000 357.100 290.000 3110 600 $1. 0 00 0.000 165.00 465.000 $852.00 All sales were on account. Net cash provided by operating activities for 2020 was $220,000. Capital expenditures were $136,000, and cash dividends were $70,000. Instructions Compute the following ratios for 2020 a. Earnings per share b. Return on common stockholders' equity. c. Return on asets. d. Current ratio e. Accounts receivable turnover 1. Average collection period Inventory turnover h. Days in inventory Times interest earned j. Asset turver k. Debt to assets ratio L Free cash flow