4 Marks=10+10+10=30 Comparative statement data for Laker Company and McGee Company, two competitors, appear below. All balance sheet data are as of December 31, 2017, and December 31, 2016. Laker Company 2017 McGee Company 2016 Net sales Cost of goods sold Operating expenses Interest expense $1,570,000 2017 $340,000 2016 1,080,490 238,000 302,275 79,000 6,800 1,252 Income tax expense 62,500 7,650 Current assets 325,975 $312,410 83,336 $ 79,467 Plant assets (net) 521,310 500,000 139,728 125,812 Current liabilities 66,325 75,815 35,348 30,281 Long-term liabilities 108,500 90,000 29,620 25,000 Common stock, $10 par 500,000 500,000 120,000 120,000 Retained earnings 172,460 146,595 38,096 29,998 Instructions: (a) Prepare a vertical analysis of the 2017 income statement data for Laker Company and McGee Company in columnar form. (b) Comment on the relative profitability and liquidity of the companies by computing relevant from the above information for both companies