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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