Comparative statement data for ABC Company and XYZ Company ispresented below. ABCCompany &nComparative statement data...

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Accounting

Comparative statement data for ABC Company and XYZ Company ispresented below.
    ABCCompany                                      XYZ Company
                                   2018               2017                           2018               2017
NetSales                    $1,570,000                                         $340,000
COGS                          1,080,490                                         238,000
Operating Expenses        302,275                                             79,000
Interest Expense                  6,800                                               1,252
Income tax expense          62,500                                               7,650
Currentassets                325,975     312,410                         83,336         79,467
Plant assets (net)            521,310     500,000                      139,728         125,812
Current liabilities              66,325     75,815                          35,348        30,281
Long-term liabilities        108,500     90,000                            29,620        25,000
Commonstock                500,000     500,000                          120,000      120,000
Retained earnings           172,460     146,595                           38,096       29,998
Prepare a vertical analysis of the 2017 income statement datafor the two companies in columnar form.
Comment on the relative profitability of both companies bycomputing return on assets and return on equity.

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3.7 Ratings (371 Votes)

Comparative income statement ABC Company XYZ Company Dollar Dollar Net sales 1570000 100 340000 100 Cost of goods sold 1080490 69 238000 70 Gross profit 489510 31 102000 30 Operating expenses 302275 19 79000 23 Income from operations 187235 12 23000 7 Other expenses See Answer

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In: AccountingComparative statement data for ABC Company and XYZ Company ispresented below. ABCCompany &nComparative statement data for ABC Company and XYZ Company ispresented below. ABCCompany XYZ Company 2018 2017 2018 2017NetSales $1,570,000 $340,000COGS 1,080,490 238,000Operating Expenses 302,275 79,000Interest Expense 6,800 1,252Income tax expense 62,500 7,650Currentassets 325,975 312,410 83,336 79,467Plant assets (net) 521,310 500,000 139,728 125,812Current liabilities 66,325 75,815 35,348 30,281Long-term liabilities 108,500 90,000 29,620 25,000Commonstock 500,000 500,000 120,000 120,000Retained earnings 172,460 146,595 38,096 29,998Prepare a vertical analysis of the 2017 income statement datafor the two companies in columnar form.Comment on the relative profitability of both companies bycomputing return on assets and return on equity.