Problem 18-1A Comparative statement data for Farris Company and Ratzlaff Company, two competitors, appear below. All balance sheet data are as of December 31, 2017, and December 31, 2016.
| Farris Company |
Ratzlaff Company
|
| 2017 |
2016 |
2017 |
2016 |
| Net sales |
$1,510,000 |
$340,000 |
| Cost of goods sold |
1,040,000 |
241,400 |
| Operating expenses |
303,900 |
79,000 |
| Interest expense |
8,900 |
2,600 |
| Income tax expense |
54,100 |
6,400 |
| Current assets |
320,500 |
$311,800 |
82,300 |
$79,200 |
| Plant assets (net) |
519,300 |
498,800 |
140,400 |
123,900 |
| Current liabilities |
65,000 |
75,000 |
34,200 |
29,000 |
| Long-term liabilities |
107,000 |
91,800 |
29,800 |
24,000 |
| Common stock, $10 par |
495,000 |
495,000 |
123,500 |
123,500 |
| Retained earnings |
172,800 |
148,800 |
35,200 |
26,600 |
Prepare a vertical analysis of the 2017 income statement data for Farris Company and Ratzlaff Company in columnar form. (Round percentages to 1 decimal place, e.g. 12.1%.)
Condensed Income Statement
December 31, 2017For the Quarter Ended December 31, 2017For the Year Ended December 31, 2017