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Problem 18-1A Comparative statement data for Farris Company and Ratzlaff Company, two competitors, appear below. All balance sheet data are as of December 31, 2017, and December 31, 2016.

Farris Company Ratzlaff Company
2017 2016 2017 2016
Net sales $1,510,000 $340,000
Cost of goods sold 1,040,000 241,400
Operating expenses 303,900 79,000
Interest expense 8,900 2,600
Income tax expense 54,100 6,400
Current assets 320,500 $311,800 82,300 $79,200
Plant assets (net) 519,300 498,800 140,400 123,900
Current liabilities 65,000 75,000 34,200 29,000
Long-term liabilities 107,000 91,800 29,800 24,000
Common stock, $10 par 495,000 495,000 123,500 123,500
Retained earnings 172,800 148,800 35,200 26,600
Prepare a vertical analysis of the 2017 income statement data for Farris Company and Ratzlaff Company in columnar form.?(Round percentages to 1 decimal place, e.g. 12.1%.)

Condensed Income Statement
?December 31, 2017For the Quarter Ended December 31, 2017For the Year Ended December 31, 2017
Farris Company Ratzlaff Company
Dollars Percent Dollars Percent
?Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues $ ?% $ ?%
?Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues ?% ?%
?Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues ?% ?%
?Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues ?% ?%
?Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues ?% ?%
?Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues
?Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues ?% ?%
?Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues ?% ?%
?Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues ?% ?%
?Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues $ ?% $ ?%

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Compute the return on assets and the return on common stockholders? equity ratios for both companies.?(Round answers to 1 decimal place, e.g. 12.1%.)

Farris Company Ratzlaff Company
Return on assets ?% ?%
Return on common stockholders? equity ?% ?%


 


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