Comparative statement data for Lionel Company and Barrymore Company, two competitors, appear below. All statement of financial position data are as of December 31, 2020, and December 31, 2019.

Instructions
a. Prepare a vertical analysis of the 2020 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 2019 2020 2019 2020 £339,038 Net sales £1,549,035 1,053,345 Cost of goods sold Operating expenses 237,325 77,979 263,336 Interest expense 7,745 2,034 Income tax expense Plant assets (net) 61,960 8,476 596,920 £575,610 142,842 £128,927 388,020 578,765 Current assets 401,584 86,450 82,581 137,435 Share capital-ordinary, £5 par Retained earnings 578,765 137,435 252,224 102,500 65,015 225,358 55,528 47,430 Non-current liabilities 84,000 16,711 11,989 Current liabilities 75,507 19,618 14,654