Question

Required

Prepare a vertical analysis of both the balance sheets and income statements for 2019 and 2018.

Prepare a vertical analysis of the balance sheets for 2019 and 2018. (Percentages may not add exactly due to rounding. Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).)

JORDAN COMPANY Vertical Analysis of Balance Sheets 2019 2018 Amount Percentage of Total Amount Percentage of Total Assets Current assets Cash $16,500 % $14,000 % Marketable securities 21,200 6,600 Accounts receivable (net) 54,500 46,900 Inventories 135,300 144,500 Prepaid items 25,100 10,700 Total current assets 252,600 222,700 Investments 27,000 20,500 Plant (net) 270,300 255,500 Land 29,300 24,200 Total long-term assets 326,600 300,200 Total assets $579,200 $522,900 Liabilities and stockholders' equity Liabilities Current liabilities Notes payable $16,800 $5,400 Accounts payable 112,200 98,800 Salaries payable 19,700 14,900 Total current liabilities 148,700 119,100 Noncurrent liabilities Bonds payable 98,300 98,300 Other 31,200 25,200 Total noncurrent liabilities 129,500 123,500 Total liabilities 278,200 242,600 Stockholders' equity Preferred stock (par value $10, 4% cumulative, nonparticipating; 6,900 shares authorized and issued) 69,000 69,000 Common stock (no par; 50,000 shares authorized; 10,000 shares issued) 69,000 69,000 Retained earnings 163,000 142,300 Total stockholders' equity 301,000 280,300 Total liabilities & stockholders’ equity $579,200 % $522,900 %

Prepare a vertical analysis of an income statements for 2019 and 2018. (Percentages may not add exactly due to rounding. Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).)

Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).)

JORDAN COMPANY Vertical Analysis of Income Statements 2019 2018 Amount Percentage of Total Amount Percentage of Total Revenues Sales (net) $231,700 % $211,500 % Other revenues 9,200 5,200 Total revenues 240,900 216,700 Expenses Cost of goods sold 119,100 101,600 Selling, general, and administrative expense 54,200 49,200 Interest expense 7,300 6,500 Income tax expense 21,700 20,700 Total expenses 202,300 178,000 Net income $38,600 % $38,700 %

Answer 1