Comparative statement data for Lionel Company and Barrymore Company, two competitors, appear below. All statement of financial position data are as of December 31, 2017, and December 31, 2016.

Instructions
(a) Prepare a vertical analysis of the 2017 income statement data for Lionel Company and Barrymore Company in columnar form.
(b) Comment on the relative profitability of the companies by computing the return on assets and the return on ordinary shareholders' equity for both companies?

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Lionel Company Barrymore Company 2016 2017 £1,549,035 1,053,345 263,336 2017 2016 Net sales Cost of goods sold Operating expenses Interest expense Income tax expense Plant assets (net) Current assets Share capital-ordinary, £5 par Retained earnings Non-current liabilities Current liabilities £339,038 237,325 77,979 2,034 8,476 7,745 61,960 401,584 578,765 252,224 102,500 65,015 596,920 £575,610 388,020 578,765 225,358 84,000 75,507 142,842£128,927 82,581 137,435 47,430 11,989 14,654 86,450 137,435 55,528 16,711 19,618