Here are comparative statement data for Prince Company and King Company, two competitors. All balance sheet data are as of December 31, 2014, and December 31, 2013.

Instructions
(a) Prepare a vertical analysis of the 2014 income statement data for Prince Company and King Company.
(b) Comment on the relative profitability of the companies by computing the 2014 return on assets and the return on common stockholders’ equity for bothcompanies.

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Prince Company King Company 2014 2014 2013 2013 Net sales Cost of goods sold Operating expenses Interest expense Income tax expense $1,849,000 1,063,200 240,000 $546,000 289,000 82,000 3,600 28,000 6,800 62,000 Current assets Plant assets (net) Current liabilities Long-term liabilities 526,800 66,325 113,990 500,000 172,460 325,975 312,410 500,000 75,815 90,000 6 1 139,728 35,348 29,620 120,000 38,096 83,336 79,467 125,812 30,281 25,000 Common stock, $10 par Retained earnings 500,000 146,595 120,000 29,998