Question: #11 Here are comparative financial statement data for Cullumber Company and Ivanhoe Company, two competitors. All data are as of December 31, 2022, and December
#11



Here are comparative financial statement data for Cullumber Company and Ivanhoe Company, two competitors. All data are as of December 31, 2022, and December 31, 2021. Cullumber Company Ivanhoe Company 2022 2021 2022 2021 Net sales $1,896,000 $561,000 Cost of goods sold 1,099,680 297,330 Operating expenses 259,752 80,223 Interest expense 9,480 4,488 Income tax expense 53,088 6,732 Current assets 326,500 $314,200 82,000 $78,000 Plant assets (net) 521,100 498,500 138,000 123,900 Current liabilities 64,800 75,800 36,600 28,800 Long-term liabilities 107,600 89,600 30,800 25,800 Common stock, $10 par 496,500 496,500 117,000 117,000 Retained earnings 178,700 150,800 35,600 30,300 Prepare a vertical analysis of the 2022 income statement data for Cullumber Company and Ivanhoe Company. (Round percentages to 1 decimal place, e.g. 12.1%.) Condensed Income Statement Cullumber Company Ivanhoe Company Dollars Percent Dollars Percent $ % $ % % % % % % % $ % $ Compute the 2022 return on assets and the return on common stockholders' equity for both companies. (Round answers to 1 decimal place, e.g. 12.1%.) Cullumber Company Ivanhoe Company Return on assets % % Return on common stockholders' equity % %
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
