Here are comparative statement data for Night Company and Day Company, two competitors. All balance sheet data are as of December 31, 2007, and December 31, 2006.

Instructions
a. Prepare a vertical analysis of the 2007 income statement data for Night Company and Day Company.
b. Comment on the relative profitability of the companies by computing the return on assets and the return on common stockholders' equity ratios for bothcompanies.

Night Company 2007 S350.000 180.000 Day Company 2007 2006 2006 S1.200.000 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 Retained earnings 278,000 10.000 54,000 51.000 3.000 17.000 130.000 S100,000 700,000 S650,000 400.000 270,000 1000,000 750,000 52.000 250.000 275.000 200.000 150.000 210.000 950.000 700.000 60.000 40,000 300,000 275,000 60.000 50.000 68,000 360.000