Question 1

Comparative statement data for Whispering Company and Metlock Company, two competitors, appear below. All statement of financial position data are as of December 31, 2017, and December 31, 2016.

		Whispering Company				Metlock Company
		2017		2016		2017		2016
Net sales		1,504,113				339,668
Cost of goods sold		1,023,277				236,886
Operating expenses		277,402				76,916
Interest expense		7,970				2,320
Income tax expense		61,839				7,410
Plant assets (net)		596,402		572,775		143,285		128,013
Current assets		408,279		385,366		85,117		81,019
Share capitalordinary, 5 par		582,000		582,000		140,000		140,000
Retained earnings		253,932		216,973		52,054		44,504
Non-current liabilities		102,775		84,601		15,746		11,897
Current liabilities		65,974		74,567		20,602		12,631

Prepare a vertical analysis of the 2017 income statement data for Whispering Company and Metlock Company in columnar form. (Round percentages to 1 decimal place, e.g. 12.1%. Enter all percentages as positive numbers.)

Compute the return on assets and the return on ordinary shareholders equity for both companies. (Round percentages to 1 decimal place, e.g. 12.1%.)