Reference no: EM131822264

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