Here are comparative statement data for Blossom Company and Sunland Company, two competitors. All balance sheet data are as of December 31, 2017, and December 31, 2016.
| | Blossom Company | | Sunland Company | | | 2017 | | 2016 | | 2017 | | 2016 | | Net sales | | $1,852,000 | | | | $590,000 | | | | Cost of goods sold | | 1,090,000 | | | | 297,000 | | | | Operating expenses | | 270,000 | | | | 83,000 | | | | Interest expense | | 7,300 | | | | 2,200 | | | | Income tax expense | | 74,100 | | | | 33,000 | | | | | | | | | | | | | Current assets | | 736,704 | | $706,047 | | 188,339 | | $ 179,595 | | Plant assets (net) | | 1,190,568 | | 1,130,000 | | 315,785 | | 284,335 | | Current liabilities | | 149,895 | | 171,342 | | 79,886 | | 68,435 | | Long-term liabilities | | 257,617 | | 203,400 | | 66,941 | | 56,500 | | | | | | | | | | | Common stock, $10 par | | 1,130,000 | | 1,130,000 | | 271,200 | | 271,200 | | Retained earnings | | 389,760 | | 331,305 | | 86,097 | | 67,795 | Warning | Don\'t show me this message again for the assignment | Ok Cancel | | | ![\"\"](\"//edugen.wileyplus.com/edugen/art2/common/pixel.gif\") | | | Prepare a vertical analysis of the 2017 income statement data for Blossom Company and Sunland Company. (Round all ratios to 1 decimal place, e.g. 2.5%.)
| Condensed Income Statement
For the Year Ended December 31, 2017 | | Blossom Company | | Sunland Company | | Dollars | | Percent | | Dollars | | Percent | | ![\"\"](\"//edugen.wileyplus.com/edugen/art2/common/pixel.gif\"/) DividendsIncome Before Income TaxesTotal Operating ExpensesExpensesSales RevenuesNet SalesGross ProfitCost of Goods SoldRetained Earnings, December 31Retained Earnings, January 1Interest ExpenseTotal ExpensesNet Income / (Loss)Other Revenues and GainsTotal RevenuesOperating ExpensesOther Expenses and LossesIncome Tax ExpenseIncome From Operations
| $1,852,000 | |
| % | | $590,000 | |
| % | | Income Tax ExpenseNet Income / (Loss)Interest ExpenseDividendsNet SalesExpensesRetained Earnings, December 31Retained Earnings, January 1Income From OperationsOther Expenses and LossesCost of Goods SoldSales RevenuesTotal ExpensesTotal RevenuesOther Revenues and GainsGross ProfitOperating ExpensesTotal Operating ExpensesIncome Before Income Taxes | 1,090,000 | |
| % | | 297,000 | |
| % | | Net SalesIncome From OperationsGross ProfitRetained Earnings, December 31Cost of Goods SoldInterest ExpenseTotal ExpensesIncome Tax ExpenseDividendsTotal Operating ExpensesExpensesNet Income / (Loss)Retained Earnings, January 1Sales RevenuesOperating ExpensesIncome Before Income TaxesTotal RevenuesOther Revenues and GainsOther Expenses and Losses | 762,000 | |
| % | | 293,000 | |
| % | | DividendsGross ProfitInterest ExpenseOperating ExpensesOther Revenues and GainsCost of Goods SoldExpensesNet Income / (Loss)Total RevenuesIncome Tax ExpenseSales RevenuesRetained Earnings, January 1Retained Earnings, December 31Total Operating ExpensesTotal ExpensesIncome Before Income TaxesNet SalesOther Expenses and LossesIncome From Operations | 270,000 | |
| % | | 83,000 | |
| % | | Other Revenues and GainsTotal Operating ExpensesSales RevenuesTotal ExpensesIncome Tax ExpenseInterest ExpenseTotal RevenuesNet Income / (Loss)Gross ProfitNet SalesDividendsIncome Before Income TaxesCost of Goods SoldExpensesOperating ExpensesRetained Earnings, January 1Retained Earnings, December 31Other Expenses and LossesIncome From Operations | 492,000 | |
| % | | 210,000 | |
| % | | Sales RevenuesTotal ExpensesTotal RevenuesGross ProfitRetained Earnings, January 1Income Before Income TaxesNet SalesOther Expenses and LossesIncome Tax ExpenseRetained Earnings, December 31Operating ExpensesNet Income / (Loss)Total Operating ExpensesExpensesOther Revenues and GainsIncome From OperationsCost of Goods SoldInterest ExpenseDividends | | | | | | | | | | | Retained Earnings, January 1 Sales Revenues Total Expenses Total Revenues Retained Earnings, December 31 Net Sales Cost of Goods Sold Income Tax Expense Gross Profit Operating Expenses Other Revenues and Gains Total Operating Expenses Income Before Income Taxes Income From Operations Other Expenses and Losses Interest Expense Dividends Expenses Net Income / (Loss) | 7,300 | |
| % | | 2,200 | |
| % | | Other Revenues and GainsSales RevenuesTotal RevenuesExpensesRetained Earnings, January 1Income From OperationsTotal Operating ExpensesGross ProfitCost of Goods SoldIncome Before Income TaxesOther Expenses and LossesIncome Tax ExpenseOperating ExpensesDividendsNet SalesInterest ExpenseNet Income / (Loss)Retained Earnings, December 31Total Expenses | 484,700 | |
| % | | 207,800 | |
| % | | DividendsIncome Tax ExpenseNet SalesTotal ExpensesRetained Earnings, January 1ExpensesNet Income / (Loss)Sales RevenuesOther Expenses and LossesOther Revenues and GainsRetained Earnings, December 31Total RevenuesIncome From OperationsGross ProfitOperating ExpensesTotal Operating ExpensesIncome Before Income TaxesCost of Goods SoldInterest Expense | 74,100 | |
| % | | 33,000 | |
| % | | Net SalesGross ProfitOther Revenues and GainsOperating ExpensesTotal ExpensesOther Expenses and LossesNet Income / (Loss)Retained Earnings, January 1Total Operating ExpensesRetained Earnings, December 31Income Before Income TaxesExpensesIncome Tax ExpenseInterest ExpenseTotal RevenuesIncome From OperationsCost of Goods SoldDividendsSales Revenues | $410,600 | |
| % | | $174,800 | |
| % | Warning | Don\'t show me this message again for the assignment | Ok Cancel | | | | | | Compute the 2017 return on assets and the return on common stockholders’ equity for both companies. (Round all ratios to 1 decimal place, e.g. 2.5%.)
| | Blossom Company | | Sunland Company | | Return on assets | |
| % | |
| % | | Return on common stockholders’ equity | |
| % | |
| % | Warning | Don\'t show me this message again for the assignment | Ok Cancel | Click if you would like to Show Work for this question: | | | | | |
Homework Sourse
