Here are comparative statement data for Silver Company and Gold Company, two competitors. All balance sheet data are as of December 31, 2012, and December 31, 2011.

Instructions(a) Prepare a vertical analysis of the 2012 income statement data for Silver Company and Gold Company.(b) Comment on the relative profitability of the companies by computing the 2012 return on assets and the return on common stockholders' equity ratios for both companies.

Gold Company Silver Company 2011 2012 2012 2011 Net sales $546,000 $1,849,000 Cost of goods sold Operating expenses Interest expense Income tax expense 1,063,200 289,000 240,000 6,800 82,000 3,600 62,000 28,000 $ 79,467 125,812 325,975 526,800 $312,410 500,000 Current assets 83,336 139,728 35,348 Plant assets (net) Current liabilities 66,325 75,815 30,281 Long-term liabilities 90,000 25,000 113,990 29,620 Common stock, $10 par Retained earnings 500,000 500,000 120,000 38,096 120,000 146,595 29,998 172,460