![\"\"](\"//edugen.wileyplus.com/edugen/art2/common/pixel.gif\") | | Problem 13-1A (Part Level Submission) Here are comparative statement data for Sunland Company and Blossom Company, two competitors. All balance sheet data are as of December 31, 2017, and December 31, 2016.
| | Sunland Company | | Blossom Company | | | 2017 | | 2016 | | 2017 | | 2016 | | Net sales | | $1,930,000 | | | | $620,000 | | | | Cost of goods sold | | 1,075,000 | | | | 293,000 | | | | Operating expenses | | 257,000 | | | | 91,000 | | | | Interest expense | | 7,300 | | | | 2,600 | | | | Income tax expense | | 67,400 | | | | 29,000 | | | | | | | | | | | | | Current assets | | 485,703 | | $465,491 | | 124,171 | | $ 118,406 | | Plant assets (net) | | 784,932 | | 745,000 | | 208,195 | | 187,460 | | Current liabilities | | 98,824 | | 112,964 | | 52,669 | | 45,119 | | Long-term liabilities | | 169,845 | | 134,100 | | 44,134 | | 37,250 | | | | | | | | | | | Common stock, $10 par | | 745,000 | | 745,000 | | 178,800 | | 178,800 | | Retained earnings | | 256,965 | | 218,427 | | 56,763 | | 44,697 | | | | | | | |
(a) Prepare a vertical analysis of the 2017 income statement data for Sunland Company and Blossom Company. (Round all ratios to 1 decimal place, e.g. 2.5%.)
| Condensed Income Statement
For the Year Ended December 31, 2017 | | Sunland Company | | Blossom Company | | Dollars | | Percent | | Dollars | | Percent | | ![\"\"](\"//edugen.wileyplus.com/edugen/art2/common/pixel.gif\"/) Income Before Income TaxesTotal RevenuesDividendsOperating ExpensesNet SalesIncome From OperationsTotal ExpensesCost of Goods SoldExpensesOther Expenses and LossesTotal Operating ExpensesSales RevenuesInterest ExpenseNet Income / (Loss)Other Revenues and GainsIncome Tax ExpenseRetained Earnings, January 1Gross ProfitRetained Earnings, December 31
| $1,930,000 | |
| % | | $620,000 | |
| % | | Income From OperationsNet SalesRetained Earnings, December 31Income Tax ExpenseTotal RevenuesCost of Goods SoldTotal ExpensesDividendsIncome Before Income TaxesGross ProfitOperating ExpensesInterest ExpenseOther Revenues and GainsOther Expenses and LossesTotal Operating ExpensesExpensesSales RevenuesNet Income / (Loss)Retained Earnings, January 1 | 1,075,000 | |
| % | | 293,000 | |
| % | | Total ExpensesOther Expenses and LossesNet Income / (Loss)Total RevenuesTotal Operating ExpensesCost of Goods SoldInterest ExpenseIncome Tax ExpenseSales RevenuesRetained Earnings, December 31Net SalesIncome Before Income TaxesDividendsExpensesOther Revenues and GainsIncome From OperationsGross ProfitOperating ExpensesRetained Earnings, January 1 | 855,000 | |
| % | | 327,000 | |
| % | | Sales RevenuesNet Income / (Loss)Gross ProfitOperating ExpensesIncome From OperationsCost of Goods SoldInterest ExpenseRetained Earnings, December 31Retained Earnings, January 1Income Tax ExpenseTotal RevenuesOther Expenses and LossesDividendsTotal ExpensesNet SalesTotal Operating ExpensesIncome Before Income TaxesOther Revenues and GainsExpenses | 257,000 | |
| % | | 91,000 | |
| % | | Retained Earnings, December 31Retained Earnings, January 1Sales RevenuesDividendsTotal ExpensesOther Revenues and GainsTotal RevenuesIncome Before Income TaxesIncome From OperationsNet SalesGross ProfitOther Expenses and LossesOperating ExpensesTotal Operating ExpensesCost of Goods SoldInterest ExpenseIncome Tax ExpenseExpensesNet Income / (Loss) | 598,000 | |
| % | | 236,000 | |
| % | | Other Revenues and GainsGross ProfitIncome From OperationsRetained Earnings, January 1DividendsNet SalesOperating ExpensesOther Expenses and LossesCost of Goods SoldInterest ExpenseIncome Tax ExpenseExpensesNet Income / (Loss)Sales RevenuesTotal Operating ExpensesRetained Earnings, December 31Total ExpensesTotal RevenuesIncome Before Income Taxes | | | | | | | | | | | Sales Revenues Cost of Goods Sold Total Revenues Income From Operations Interest Expense Income Before Income Taxes Income Tax Expense Other Revenues and Gains Dividends Retained Earnings, December 31 Expenses Total Expenses Net Income / (Loss) Retained Earnings, January 1 Net Sales Gross Profit Operating Expenses Total Operating Expenses Other Expenses and Losses | 7,300 | |
| % | | 2,600 | |
| % | | Retained Earnings, January 1Other Expenses and LossesNet SalesTotal ExpensesRetained Earnings, December 31Total Operating ExpensesInterest ExpenseGross ProfitCost of Goods SoldIncome From OperationsOther Revenues and GainsSales RevenuesTotal RevenuesOperating ExpensesIncome Before Income TaxesIncome Tax ExpenseDividendsExpensesNet Income / (Loss) | 590,700 | |
| % | | 233,400 | |
| % | | Income Tax ExpenseDividendsIncome Before Income TaxesInterest ExpenseSales RevenuesTotal Operating ExpensesOther Revenues and GainsTotal ExpensesExpensesCost of Goods SoldNet SalesGross ProfitOperating ExpensesNet Income / (Loss)Total RevenuesRetained Earnings, January 1Other Expenses and LossesIncome From OperationsRetained Earnings, December 31 | 67,400 | |
| % | | 29,000 | |
| % | | Total Operating ExpensesIncome Before Income TaxesExpensesTotal RevenuesOther Revenues and GainsRetained Earnings, January 1Net Income / (Loss)Retained Earnings, December 31Sales RevenuesGross ProfitOperating ExpensesOther Expenses and LossesTotal ExpensesIncome From OperationsNet SalesIncome Tax ExpenseDividendsCost of Goods SoldInterest Expense | $523,300 | |
| % | | $204,400 | |
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