Question

ta are as of December 31, 2017 and December 31, 2016. Problem 13-1A Here are comparative statement data for Ivanhoe Company and Pharoah Company, two competitors. All Ivanhoe Company Pharoah Company 2017 2016 2017 2016 Net sales $1,913,000 $603,000 Cost of goods sold 1,061,000 Operating expenses 264,000 Interest expense 7,600 Income tax expense 65,600 289,000 A Current assets Plant assets (net) Current liabilities Long-term liabilities 726,924 1,174,764 147,905 254,198 $696,674 1,115,000 169,067 200,700 185,839 311,593 280,561 78,826 66.05255.250 Common stock, $10 Retained earnings 1,115,000 1,115,000 384,386326,907 267,600 ,954 66,896

Answer 1

	Ivanhoe company		Pharosh Company
Net sales	1913000	100.0%	603000	100.0%
Cost of goods sold	1081000	56.5%	289000	47.9%
gross profit	832000	43.5%	314000	52.1%
operating expenses	264000	13.8%	89000	14.8%
income from operations	568000	29.7%	225000	37.3%
interest expense	7600	0.4%	1900	0.3%
income before income taxes	560400	29.3%	223100	37.0%
income tax expense	65600	3.4%	31000	5.1%
net income	494800	25.9%	192100	31.9%

	Ivanhoe company	Pharosh company
Net income	494800	192100
Average total assets	1856681	477602
shareholder's equity	1499586	352554
Return on assets	26.65%	40.22%
return on common stockholder's equity	33.00%	54.49%