Comparative statement data for Douglas Company and Maulder Company, two competit
ID: 2371143 • Letter: C
Question
Comparative statement data for Douglas Company and Maulder Company, two competitors, appear below. All balance sheet data are as of December 31, 2013, and December 31, 2012.
Douglas Company
Maulder Company
2013
2012
2013
2012
Net Sales
$1,549,035
$339,038
Cost of goods sold
1,080,490
241,000
Operating expenses
302,275
79,000
Interest expense
8,980
2,252
Income tax expense
54,500
6,650
Current assets
325,975
$312,410
83,336
$79,467
Plant assets (net)
521,310
500,000
139,728
125,812
Current liabilities
65,325
75,815
35,348
30,281
Long-term liabilities
108,500
90,000
29,620
25,000
Common stock, $10 par
500,000
500,000
120,000
120,000
Retained earnings
173,460
146,595
38,096
29,998
Complete the vertical analysis of the 2013 income statement data for Douglas Company and Maulder Company in columnar form. (Round percentages to 1 decimal place, e.g. 10.5.)
Douglas Company
Maulder Company
2013
2012
2013
2012
Net Sales
$1,549,035
$339,038
Cost of goods sold
1,080,490
241,000
Operating expenses
302,275
79,000
Interest expense
8,980
2,252
Income tax expense
54,500
6,650
Current assets
325,975
$312,410
83,336
$79,467
Plant assets (net)
521,310
500,000
139,728
125,812
Current liabilities
65,325
75,815
35,348
30,281
Long-term liabilities
108,500
90,000
29,620
25,000
Common stock, $10 par
500,000
500,000
120,000
120,000
Retained earnings
173,460
146,595
38,096
29,998
Explanation / Answer
for douglas company
net sales ...................100%
cost of goods sold..... 69.8%
gross profit...................30.2%
operating expense.......19.5%
income from operations..10.7%
interest expense .............0.6%
income before income taxes 10.1%
income tax expense ...............3.5%
net income................................6.6%
for maulder company
net sales ...................100%
cost of goods sold..... 71.1%
gross profit...................28.9%
operating expense.......23.3%
income from operations..5.6%
interest expense .............0.7%
income before income taxes 4.9%
income tax expense ...............1.9%
net income................................3.0%
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