Question: Compute the 2020 return on assets and the return on common stockholders equity ratios for both companies. (Round answers to 1 decimal place, e.g. 12.1%.)
Compute the 2020 return on assets and the return on common stockholders equity ratios for both companies. (Round answers to 1 decimal place, e.g. 12.1%.)
Here are comparative statement data for Duke Company and Lord Company, two competitors. All balance sheet data are as of December 31, 2020, and December 31, 2019.
| Duke Company | Lord Company | |||||||
|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |||||
| Net sales | $1,800,000 | $559,000 | ||||||
| Cost of goods sold | 1,000,800 | 296,270 | ||||||
| Operating expenses | 234,000 | 78,260 | ||||||
| Interest expense | 7,200 | 3,913 | ||||||
| Income tax expense | 52,200 | 6,149 | ||||||
| Current assets | 320,000 | $310,000 | 82,000 | $78,000 | ||||
| Plant assets (net) | 519,000 | 497,000 | 138,000 | 123,000 | ||||
| Current liabilities | 64,000 | 74,000 | 34,000 | 28,000 | ||||
| Long-term liabilities | 107,000 | 89,000 | 28,000 | 24,000 | ||||
| Common stock, $10 par | 495,000 | 495,000 | 115,000 | 115,000 | ||||
| Retained earnings | 173,000 | 149,000 | 43,000 | 34,000 | ||||
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