Question

Problem 14-1A a, b1 (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 Lord Company 2020 2019 2020 2019 Net sales $1,884,000 $561,000 Cost of goods sold 1,060,692 296,208 Operating expenses 261,876 79,662 Interest expense 9,420 4,488 Income tax expense 52,752 6,732 Current assets 321,000 $312,400 83,200 $79,500 Plant assets (net) 521,100 497,600 139,200 123,300 Current liabilities 65,800 74,400 35,800 31,800 Long-term liabilities 108,600 91,200 30,000 24,400 Common stock, $10 par 503,500 503,500 123,000 123,000 Retained earnings 164,200 140,900 33,600 23,600 Collapse question part (a) Prepare a vertical analysis of the 2020 income statement data for Duke Company and Lord Company. (Round percentages to 1 decimal place, e.g. 12.1%.) Condensed Income Statement Duke Company Lord Company Dollars Percent Dollars Percent $ 1,884,000 % $ % 1,060,692 % % % % % % % % % % % % % % $ % $ %

Answer 1

Condensed Income Statement
For the year ended December 31,2020
	Duke Company		Lord Company
	Dollars	Percent	Dollars	Percent
Net sales	1884000	100.0%	561000	100.0%
Cost of goods sold	1060692	56.3%	296208	52.8%
Gross Profit	823308	43.7%	264792	47.2%
Operating expenses	261876	13.9%	79662	14.2%
Income from Operations	561432	29.8%	185130	33.0%
Other expenses and losses
Interest expense	9420	0.5%	4488	0.8%
Income before income taxes	552012	29.3%	180642	32.2%
Income tax expense	52752	2.8%	6732	1.2%
Net income/(loss)	499260	26.5%	173910	31.0%