Question: Here are comparative statement data for Duke Company and Lord Company, two competitors. All balance sheet data are as of December 31, 2017, and December

Here are comparative statement data for Duke Company and Lord Company, two competitors. All balance sheet data are as of December 31, 2017, and December 31, 2016.

Duke Company

Lord Company

2017

2016

2017

2016

Net sales$1,849,000

$546,000

Cost of goods sold1,063,200

289,000

Operating expenses240,000

82,000

Interest expense6,800

3,600

Income tax expense62,000

28,000

Current assets325,975

$312,410

83,336

$ 79,467

Plant assets (net)526,800

500,000

139,728

125,812

Current liabilities66,325

75,815

35,348

30,281

Long-term liabilities113,990

90,000

29,620

25,000

Common stock, $10 par500,000

500,000

120,000

Retained earnings172,460

146,595

38,096

29,998

Instructions(a) draft a vertical analysis of the 2017 income statement data for Duke Company and Lord Company

B. Comment on the relative profitability of the companies by computing the 2017 return on assets and the return on common stockholders' equity for both companies.

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