Simple return on assets and return on common stock holders equity problem

Problem 14-1A (Part Level Submission) Comparative statement data for Farris Company and Ratzlaff Company, two competitors, appear below. All balance sheet data are as of December 31, 2017, and December 31, 2016. Net sales Cost of goods sold Operating expenses Interest expense Income tax expense Current assets Plant assets (net) Current liabilities Long-term liabilities Common stock, $10 par Retained earnings Farris Company 2017 2016 $1,549,035 1,080,490 302,275 8,980 54,500 325,975 $312,410 521,310 500,000 65,325 75,815 108,500 90,000 500,000 500,000 173,460 146,595 Ratzlaff Company 2017 2016 $339,038 241,000 79,000 2,252 6,650 83,336 $79,467 139,728 125,812 35,348 30,281 29,620 25,000 120,000 120,000 38,096 29,998 Prepare a vertical analysis of the 2017 income statement data for Farris Company and Ratzlaff Company in columnar form. (Round percentages to 1 decimal place, e.g. 12.1%.) Condensed Income Statement For the Year Ended December 31, 2017 Farris Company Percent Ratzlaff Company Dollars Dollars Percent Net Sales 1.549,035 100) 339,038|| 100 Cost of Goods Sold 1,080,490 69.8 241,000 FxPPTP T Gross Profit ; 468,545 30.2|| 98,038 28.9 % TOperating Expenses ; 302,275|| | 19.5 79,000|| 23.3 % TIncome From Operations 166,270 PVPVP HNH 10.7) 19.038 5.6% Other Expenses and Losses ) TInterest Expense ; 8,980 | 225. 1 T Income Before Income Taxes 157 290 16: - T Income Tax Expense 54.500 || T Net Income / [Loss) 102.790 SHOW ANSWER (51) Compute the return on assets and the return on common stockholders' equity ratios for both companies. (Round answers to 1 decimal place, e.g. 12.1%.) Farris Company Ratzlaff Company Return on assets Return on common stockholders' equity