Here are comparative financial statement data for Oriole Company and Ivanhoe Company, two competitors. All data are as of December 31, 2027, and December 31, 2026. Oriole Company Ivanhoe Company 2027 2026 2027 2026 Net sales $1,774,000 $531,000 Cost of goods sold 961,508 298,953 Operating expenses 237,716 79,119 Interest expense 7,096 Income tax expense 62,090 3,717 29,736 Current assets 324,900 $314,400 82,400 $79,100 Plant assets (net) 523,200 510,000 139,000 127,800 Current liabilities 65.000 75,200 36,000 30,100 Long-term liabilities 116,200 89,000 29,300 25,500 Common stock, $10 par 491,000 491,000 121,000 121,000 Retained earnings 175,900 169.200 35,100 30,300 (a) Prepare 2027 income statements for both companies, then prepare a vertical analysis for each. (Round percentages to 1 decimal place, e.g. 2.5%.) (b1) Condensed Income Statement For the Year Ended December 31, 2027 Oriole Company Dollars $1,774,000 961,508 Ivanhoe Company Dollars Percent Percent % $531,000 % 298,953 812,492 % 232,047 237,716 % 79.119 574,776 % 152,928 7,096 % 3,717 567,680 % 149,211 62,090 % 29,736 $505,590 % $119,475 Compute the 2027 return on assets and the return on common stockholders' equity for both companies. (Round percentages to 1 decimal place, e.g. 2.5%.) Return on assets Return on common stockholders' equity Oriole Company % % Ivanhoe Company % %
Here are comparative financial statement data for Oriole Company and Ivanhoe Company, two competitors. All data are as of December 31, 2027, and December 31, 2026. Oriole Company Ivanhoe Company 2027 2026 2027 2026 Net sales $1,774,000 $531,000 Cost of goods sold 961,508 298,953 Operating expenses 237,716 79,119 Interest expense 7,096 Income tax expense 62,090 3,717 29,736 Current assets 324,900 $314,400 82,400 $79,100 Plant assets (net) 523,200 510,000 139,000 127,800 Current liabilities 65.000 75,200 36,000 30,100 Long-term liabilities 116,200 89,000 29,300 25,500 Common stock, $10 par 491,000 491,000 121,000 121,000 Retained earnings 175,900 169.200 35,100 30,300 (a) Prepare 2027 income statements for both companies, then prepare a vertical analysis for each. (Round percentages to 1 decimal place, e.g. 2.5%.) (b1) Condensed Income Statement For the Year Ended December 31, 2027 Oriole Company Dollars $1,774,000 961,508 Ivanhoe Company Dollars Percent Percent % $531,000 % 298,953 812,492 % 232,047 237,716 % 79.119 574,776 % 152,928 7,096 % 3,717 567,680 % 149,211 62,090 % 29,736 $505,590 % $119,475 Compute the 2027 return on assets and the return on common stockholders' equity for both companies. (Round percentages to 1 decimal place, e.g. 2.5%.) Return on assets Return on common stockholders' equity Oriole Company % % Ivanhoe Company % %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Here are comparative financial statement data for Oriole Company and Ivanhoe Company, two competitors. All data are as of
December 31, 2027, and December 31, 2026.
Oriole Company
Ivanhoe Company
2027
2026
2027
2026
Net sales
$1,774,000
$531,000
Cost of goods sold
961,508
298,953
Operating expenses
237,716
79,119
Interest expense
7,096
Income tax expense
62,090
3,717
29,736
Current assets
324,900
$314,400
82,400 $79,100
Plant assets (net)
523,200
510,000
139,000
127,800
Current liabilities
65.000
75,200
36,000
30,100
Long-term liabilities
116,200
89,000
29,300
25,500
Common stock, $10 par
491,000
491,000
121,000
121,000
Retained earnings
175,900
169.200
35,100
30,300
(a)
Prepare 2027 income statements for both companies, then prepare a vertical analysis for each. (Round percentages to 1 decimal place,
e.g. 2.5%.)
(b1)
Condensed Income Statement
For the Year Ended December 31, 2027
Oriole Company
Dollars
$1,774,000
961,508
Ivanhoe Company
Dollars
Percent
Percent
% $531,000
%
298,953
812,492
%
232,047
237,716
%
79.119
574,776
%
152,928
7,096
%
3,717
567,680
%
149,211
62,090
%
29,736
$505,590
%
$119,475
Compute the 2027 return on assets and the return on common stockholders' equity for both companies. (Round percentages to 1
decimal place, e.g. 2.5%.)
Return on assets
Return on common stockholders' equity
Oriole Company
%
%
Ivanhoe Company
%
%
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