1. 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.

2. 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%.)

3. 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%.)

Please give explanation so I understand. Thank you.

Problem 14-1A 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 Farris Company 2017 Ratzlaff Company 2016 2016 2017 $339,100 241,200 78,300 2,700 6,000 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 $1,530,000 1,100,000 304,800 8,500 54,200 326,000 $310,000 82,900 $78,900 519,600 500,000 140,100 124,200 65,200 75,000 34,000 32,000 107,000 90,000 30,000 24,200 115,000 178,400 150,000 44,000 31,900 495,000 495,000 115,000