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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 % %

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.4.14P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...
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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 % %
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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