Question

Vertical Analysis

Problem 14-1A a, bi (Part Level Submission) Here are comparative statement data for Duke Company and Lord Company, two competitors. All balance sheet data are as of December 31, 2020, and December 31, 2019. Duke Company 2020 2019 Net sales Cost of goods sold Operating expenses Interest expense Income tax expense Current assets Plant assets (net) Current liabetes Long-term liabilities Common stock, 510 $1,878,000 1,100,508 261,042 9,390 54,462 329,000 519,900 65,400 108,800 499,500 175,200 Lord Company 2020 2019 $559,000 296,829 79,937 4,472 6,149 85,200 $78,300 139,800 124,200 34,200 29,600 30,200 26,000 120,500 120,500 38,100 26,400 $312,100 501,200 74,800 90,400 499,500 148,600 Retained earnings

Answer 1

Condensed Income Statement For the Year Ended December 31, 2020 Duke Company Lord Company Dollars Percent Dollars Percent Net Sales $1.878.000 100.0% $ 559.000 100.0% Cost of Goods sold $1,100,508 58.6% $ 296,829 53.1% Gross Profit $ 777,492 41.4% $ 262,171 46.9% Operating Expenses $ 261,042 13.9% $ 79,937 14.3 Operating Profit $ 516,450 27.5% S 182.234 32.6% Other Expenses Interest Expenses S 9.390 0.5% $ 4.472 0.8% Income Before Income Taxes S 507,060/ 27.0% S 177,762 31.8% Income Tax Expenses $ 54.462 2.99 $ 6.149 1.1% Net Income $ 452,598 24.10 $ 171,613 30.7%