Question

Vertical Analysis of Balance Sheet

Balance sheet data for Alvarez Company on December 31, the end of two recent fiscal years, follows:

	Current Year		Previous Year
Current assets	$302,470		$187,680
Property, plant, and equipment	594,510		508,300
Intangible assets	146,020		86,020
Current liabilities	239,890		140,760
Long-term liabilities	406,770		320,620
Common stock	93,870		86,020
Retained earnings	302,470		234,600

Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets and each liability and stockholders' equity item as a percent of the total liabilities and stockholders' equity. If required, round percentages to one decimal place.

Alvaraz Company
Comparative Balance Sheet
For the Years Ended December 31
	Current year Amount	Current year Percent	Previous year Amount	Previous year Percent
Current assets	$302,470	%	$187,680	%
Property, plant, and equipment	594,510	%	508,300	%
Intangible assets	146,020	%	86,020	%
Total assets	$1,043,000	%	$782,000	%
Current liabilities	$239,890	%	$140,760	%
Long-term liabilities	406,770	%	320,620	%
Common stock	93,870	%	86,020	%
Retained earnings	302,470	%	234,600	%
Total liabilities and stockholders' equity	$1,043,000	%	$782,000	%

Answer 1