Prepare a vertical analysis

Assignment Help International Economics
Reference no: EM1375245

Comparative statement information for Douglas Corporation and Maulder Corporation, two competitors, appear below. All balance sheet data are as of December 31, 2009, and December 31, 2008.

Douglas Corporation Maulder Corporation
2009 2008 2009 2008
Net sales $1,549,035 $339,038
Cost of goods sold 1,080,490 241,000
Operating expenses 302,275 79,000
Interest expense 8,980 2,252
Income tax expense 54,500 6,650
Current assets 325,975 $312,410 83,336 $ 79,467
Plant assets (net) 521,310 500,000 139,728 125,812
Current liabilities 65,325 75,815 35,348 30,281
Long-term liabilities 108,500 90,000 29,620 25,000
Common stock, $10 par 500,000 500,000 120,000 120,000
Retained earnings 173,460 146,595 38,096 29,998

Prepare vertical analysis and comment on profitability.


(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.

Reference no: EM1375245

Explain the effect of the economic condition of the country

Choose one major world economy from the list below. Analyze the effect of the economic condition of the country of your choice on the world in general and specifically how i

Calculate shares of steel exports going to each country

Now assume that the two countries are engaged in Cournot competition in the steel export market. With this assumption, can you calculate the world price of steel if the worl

What goods should be imported and what sourced locally

Present ideas on what goods/services should be imported and what should be sourced locally. Present recommended techniques that the company can use to protect themselves from

What issue did pepsico face here

What issue did PepsiCo face here - Suggest how marketers can avoid such cross-culture marketing mistakes and Write a six pages text report. Articles references must be current

What if incumbent managers were not generally more qualified

When China reformed state-owned enterprises, it tried a new approach to choosing managers: it put managerial jobs up for auction. The bids for the jobs consisted of promise

Analyze the way banks are supervised in the us

Consider the role the U.S. government has taken in the regulation of banks, as well as the history of major banking regulations, and predict the next major regulatory move b

Illustrate price change as well as changes to the quantity

The world price of wine is below the price that would prevail in the United States in the absence of trade. a.) Assuming that American imports of wine are a small part of tot

Explain why china is experiencing a golf boom

Explain why China is experiencing a golf boom. Support your answer with details from the text. Compare and contrast the advantages and disadvantages of low-cost health insur


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd