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P15-1Comparative statement data for Douglas Company and Maulder Company, two competitors, appear below. All balance sheet data are as of December 31, 2009, and December 31, 2008.Douglas CompanyMaulder Company2009200820092008Net sales$1,549,035 $339,038 Cost of goods sold1,080,490241,000Operating expenses302,27579,000Interest expense8,9802,252Income tax expense54,5006,650Current assets325,975$312,410 83,336$79,467 Plant assets (net)521,310500,000139,728125,812Current liabilities65,32575,81535,34830,281Long-term liabilities108,50090,00029,62025,000Common stock, $10 par500,000500,000120,000120,000Retained earnings173,460146,59538,09629,998Instructions(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.----------------ANSWER:P15-1(a) Condensed Income StatementFor the Year Ended December 31, 2009Douglas CompanyMaulder CompanyDollarsPercentDollarsPercentNet sale$1,549,035 100.0%$339,038 100.0%Cost of goods sold 1,080,490 69.8% 241,000 71.1%Gross profit 468,545 30.2% 98,038 28.9%Operating expenses 302,275 19.5% 79,000 23.3%Income from operations

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