Axia College of University of Phoenix (UoP)
Principles of Accounting: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting (6th ed.). Hoboken, NJ: Wiley.
ACC 280 / XACC 280
Tutorial ACC 280
Solution XACC 280
Answer XACC 280
Douglas Company Maulder Company
2009 2008 2009 2008
Net sales 15,49,035 3,39,038
Cost of goods sold 10,80,490 2,41,000
Operating expenses 3,02,275 79,000
Interest expense 8,980 2,252
Income tax expense 54,500 6,650
Current assets 3,25,975 3,12,410 83,336 79,467
Plant assets (net) 5,21,310 5,00,000 1,39,728 1,25,812
Current liabilities 65,325 75,815 35,348 30,281
Long-term liabilities 1,08,500 90,000 29,620 25,000
Common stock, $10 par 5,00,000 5,00,000 1,20,000 1,20,000
Retained earnings 1,73,460 1,46,595 38,096 29,998
Instructions
(a) Prepare a vertical analysis of the 2009 income statement data for Douglas Company and Maulder Company in columnar form.
(b) Comment on the relative profitability of the companies by computing the Return on assets and the return on common stockholders’ equity ratios for both companies.
