Here are comparative statement data for Duke Company and Lord Company, two competitors. All balance sheet data are as of December 31, 2022, and December 31, 2021. 

Instructions 

a. Prepare a vertical analysis of the 2022 income statement data for Duke Company and Lord Company. 

b. Comment on the relative profitability of the companies by computing the 2022 return on assets and the return on common stockholders’ equity for both companies.

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Duke Company Lord Company 2022 2021 2022 2021 Net sales $1,849,000 $546,000 Cost of goods sold Operating expenses Interest expense Income tax expense 1,063,200 289,000 82,000 240,000 6,800 3,600 28,000 62,000 $ 79,467 125,812 30,281 Current assets Plant assets (net) Current liabilities 325,975 $312,410 83,336 139,728 35,348 500,000 526,800 66,325 75,815 Long-term liabilities Common stock, $i0 par Retained earnings 113,990 90,000 29,620 25,000 120,000 120,000 500,000 500,000 172,460 146,595 38,096 29,998