Here are comparative statement data for Duke Company and Lord Company, two competitors. All balance...
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Accounting
Here are comparative statement data for Duke Company and Lord Company, two competitors. All balance sheet data are as of December 31, 2022, and December 31, 2021.
Duke Company
Lord Company
2022
2021
2022
2021
Net sales
$1,849,000
$546,000
Cost of goods sold
1,063,200
289,000
Operating expenses
240,000
82,000
Interest expense
6,800
3,600
Income tax expense
62,000
28,000
Current assets
325,980
$312,410
83,336
$ 79,467
Plant assets (net)
526,800
500,000
139,729
125,812
Current liabilities
66,325
75,815
35,348
30,281
Long-term liabilities
113,990
90,000
29,620
25,000
Common stock, $10 par
500,000
500,000
120,000
120,000
Retained earnings
172,460
146,600
38,096
29,998
(a) Prepare a vertical analysis of the 2022 income statement data for Duke Company and Lord Company. (Round all ratios to 1 decimal place, e.g. 2.5%.)
Condensed Income Statement For the Year Ended December 31, 2022
Duke Company
Lord Company
Dollars
Percent
Dollars
Percent
Net Sales
$1,849,000
100
%
$546,000
100
%
Costs of Goods Sold
1,063,200
enter percentages
%
289,000
enter percentages
%
select a summarizing line for the first part DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31Sales RevenuesTotal ExpensesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating ExpensesIncome Before Income TaxesOther Revenues and GainsOther Expenses and LossesIncome From OperationsCost of Goods SoldInterest ExpenseIncome Tax Expense
785,800
enter percentages
%
257,000
enter percentages
%
select an income statement item DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31Sales RevenuesTotal ExpensesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating ExpensesIncome Before Income TaxesOther Revenues and GainsOther Expenses and LossesIncome From OperationsCost of Goods SoldInterest ExpenseIncome Tax Expense
240,000
enter percentages
%
82,000
enter percentages
%
select a summarizing line for the second part DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31Sales RevenuesTotal ExpensesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating ExpensesIncome Before Income TaxesOther Revenues and GainsOther Expenses and LossesIncome From OperationsCost of Goods SoldInterest ExpenseIncome Tax Expense
545,800
enter percentages
%
175,000
enter percentages
%
select an opening section name DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31Sales RevenuesTotal ExpensesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating ExpensesIncome Before Income TaxesOther Revenues and GainsOther Expenses and LossesIncome From OperationsCost of Goods SoldInterest ExpenseIncome Tax Expense
select an income statement item DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31Sales RevenuesTotal ExpensesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating ExpensesIncome Before Income TaxesOther Revenues and GainsOther Expenses and LossesIncome From OperationsCost of Goods SoldInterest ExpenseIncome Tax Expense
6,800
enter percentages
%
3,600
enter percentages
%
select a summarizing line for the third part DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31Sales RevenuesTotal ExpensesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating ExpensesIncome Before Income TaxesOther Revenues and GainsOther Expenses and LossesIncome From OperationsCost of Goods SoldInterest ExpenseIncome Tax Expense
539,000
enter percentages
%
171,400
enter percentages
%
select an income statement item DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31Sales RevenuesTotal ExpensesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating ExpensesIncome Before Income TaxesOther Revenues and GainsOther Expenses and LossesIncome From OperationsCost of Goods SoldInterest ExpenseIncome Tax Expense
62,000
enter percentages
%
28,000
enter percentages
%
select a closing name for this statement DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31Sales RevenuesTotal ExpensesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating ExpensesIncome Before Income TaxesOther Revenues and GainsOther Expenses and LossesIncome From OperationsCost of Goods SoldInterest ExpenseIncome Tax Expense
$477,000
enter percentages
%
$143,400
enter percentages
%
(b1) Compute the 2022 return on assets and the return on common stockholders equity for both companies. (Round all ratios to 1 decimal place, e.g. 2.5%.)
Duke Company
Lord Company
Return on assets
enter percentages
%
enter percentages
%
Return on common stockholders equity
enter percentages
%
enter percentages
%
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