Question 3 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 2020 2019 2019 Net sales $1,812,000 $559,000 Cost of goods sold 297,388 1,020,156 Operating expenses 269,988 78,819 Interest expense 9,060 4,472 Income tax expense 54,360 6,708 $313,600 $78,900 Current assets 324,000 83,200 Plant assets (net) 139,200 521,400 499,400 124,500 Current liabilities 29,200 65,600 75,800 35,800 108,400 Long-term liabilities 89,000 28,800 25,400 Common stock, $10 124,500 497,000 497,000 124,500 par Retained earnings 174,400 151,200 33,300 24,300 (a) Prepare a vertical analysis of the 2020 income statement data for Duke Company and Lord Company. (Round percentages to 1 decimal place, e.g. 12.1%.) Condensed Income Statement For the Year Ended December 31, 2020 Duke Company Lord Company Dollars Dollars Percent Percent 1812000 559000 100 100 Net Sales 56.3 297388 53.2 1020156 Cost of Goods Sold 46.8 43.7 791844 Gross Profit 261612 269988 14.1 % 14.9 78819 Operating Expenses 521856 28.8 32.7 Income From Operations 182793 Other Expenses and Losses Interest Expense .5 .8 % 9060 4472 Income Before Income Taxes 28.3 178321 31.9 512796 54360 6708 3.0 1.2 Income Tax Expense Net Income / (Loss) 171613 458436 25.3 30.7 Click if you would like to Show Work for this question: Open Show Work Attempts: 1 of 5 used (b1) 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 Return on common stockholders' equity Open Show Work Click if you would like to Show Work for this question: Attempts: 0 of 5 used