Financial Statement Analysis

Prepare a vertical analysis of the 2020 income statement data for Duke Company and Lord Company.

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
Cost of goods sold
Operating expenses
Interest expense
Income tax expense
$1,896,000
1,020,048
257,856
7,584
54,984
322,500
520,800
64,200
108,400
$561,000
297,330
79,662
3,927
6,171
83,500
139,800
34,400
28,400
Current assets
Plant assets (net)
Current liabilities
Long-term liabilities
Common stock, $10
par
Retained earnings
$310,000
500,300
75,600
90,400
$78,000
123,000
29,600
26,000
498,000
498,000
122,500
122,500
172,700
146,300
38,000
22,900
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
For the Year Ended December 31, 2020
Duke Company
Lord Company
Dollars
Percent
Dollars
Percent
x
Net Sales
1,896,000.00
100%
561,000.00
100%
%
%
x
X
Cost of Goods Sold
1,020,048.00
53.8
297,330.00
53%
%
%
x
Gross Profit
875,952.00
116.45
263,670.00
47.0%
%
%
X
x
Operating Expenses
257,856.00
13.6%
79,662.00
14.2%
%
%
x
x
Income From Operations
618,096.00
32.6%
184,008.00
32.8%
%
%
Other Expenses and Losses
x
x
Interest Expense
7,584.00
4.0%
3,927.00
0.7%
%
%
x
X
Income Before Income Taxes
610,512.00
32.2%
180,081.00
32.1%
%
%
XI
x
Income Tax Expense
54,984.00
2.9%
6,171.00
1.1%
%
%
IX
X
Net Income / (Loss)
555,528.00
29.3%
173,910.00
31.0%
%
%