$7.$ Comparative statement data for Laker Company and McGee Company, two competitors, appear below. All balance sheet data are as of December $31,2020,$ and December $31,2019.$

Laker Company McGee Company

$2020201920202019$

Net sales $$1,570,000$ $$340,000$

Cost of goods sold $1,080,490238,000$

Operating expenses $302,27579,000$

Interest expense $6,8001,252$

Income tax expense $62,5007,650$

Current assets $325,975$ $$312,41083,336$ $$79,467$

Plant assets $($net$)521,310500,000139,728125,812$

Current liabilities $66,32575,81535,34830,281$

Long$-$term liabilities $108,50090,00029,62025,000$

Common stock, $$10$ par $500,000500,000120,000120,000$

Retained earnings $172,460146,59538,09629,998$

Instructions

$($a$)$ Prepare a vertical analysis of the $2020$ income statement data for Laker Company and McGee Company in columnar form.

$($b$)$ Comment on the relative profitability of the companies by computing the return on assets and the return on common stockholders$$ equity ratios for both companies.