Here are comparative statement data for Duke Company and Lord Company, two competitors. All balance...

70.2K

Verified Solution

Question

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

%

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students