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 $304,500 $182,840 Property, plant, and equipment 461,100 437,510 Intangible assets 104,400 32,650 Current liabilities 174,000 84,890 Long-term liabilities 330,600 261,200 Common stock 87,000 91,420 Retained earnings 278,400 215,490 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 $304,500 % $182,840 % Property, plant, and equipment 461,100 % 437,510 % Intangible assets 104,400 % 32,650 % Total assets $870,000 % $653,000 % Current liabilities $174,000 % $84,890 % Long-term liabilities 330,600 % 261,200 % Common stock 87,000 % 91,420 % Retained earnings 278,400 % 215,490 % Total liabilities and stockholders' equity $870,000 % $653,000 %

Answer 1

the following is the comparative balance sheet:

	current year amount	current year percent	previous year amount	previous year percent
current assets	304,500	(304,500/870,000*100)=>35%	182,840	(182,840/653,000*100)=>28%
property plant and equipment	461,100	(461,100/870,000*100)=>53%	437,510	(437,510/653,000*100)=>67%
intangible assets	104,400	(104,400/870,000*100)=>12%	32,650	(32,650/653,000*100)=>5%
total assets	870,000	(870,000/870,000 * 100)=>100%	653,000	(653,000/653,000*100)=>100%
current liabilities	174,000	(174,000/870,000*100)=>20%	84,890	(84,890/653,000)*100=>13%
long term liabilities	330,600	(330,600/870,000*100)=>38%	261,200	(261,200/653,000*100)=>40%
common stock	87,000	(87,000/870,000*100)=>10%	91,420	(91,420*653,000*100)=>14%
retained earnings	278,400	(278,400/870,000*100)=>32%	215,490	(215,490/653,000*100)=>33%
total liabilities and stockholder's equity	870,000	(870,000/870,000)*100=>100%`	653,000	(653,000/653,000*100)=>100%