Question

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

	Current Year		Previous Year
Current assets	$250,200		$156,500
Property, plant, and equipment	483,720		419,420
Intangible assets	100,080		50,080
Current liabilities	191,820		100,160
Long-term liabilities	316,920		256,660
Common stock	100,080		87,640
Retained earnings	225,180		181,540

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	$250,200	%	$156,500	%
Property, plant, and equipment	483,720	%	419,420	%
Intangible assets	100,080	%	50,080	%
Total assets	$834,000	%	$626,000	%
Current liabilities	$191,820	%	$100,160	%
Long-term liabilities	316,920	%	256,660	%
Common stock	100,080	%	87,640	%
Retained earnings	225,180	%	181,540	%
Total liabilities and stockholders' equity	$834,000	%	$626,000	%

Answer 1

Alvarez Company
Common Size Balance Sheet
	Current Year	Percent	Working	Previous Year	Percent	Working
Assets
Current Assets	$              2,50,200.00	$       0.30	($250200/$834000)	$          1,56,500.00	$      0.25	($156500/$626000)
Property,Plant and Equipment	$              4,83,720.00	$       0.58	($483720/$834000)	$          4,19,420.00	$      0.67	($419420/$626000)
Intangible Assets	$              1,00,080.00	$       0.12	($10080/$834000)	$             50,080.00	$      0.08	($50080/$626000)
Total Assets	$              8,34,000.00	$       1.00	($834000/$834000)	$          6,26,000.00	$      1.00	($626000/$626000)
Liabilities & Stockholder's Equity
Current Liabilities	$              1,91,820.00	$       0.23	($191820/$834000)	$          1,00,160.00	$      0.16	$100160/$626000)
Long Term Liabilities	$              3,16,920.00	$       0.38	($316920/$834000)	$          2,56,660.00	$      0.41	($256660/$626000)
Common Stock	$              1,00,080.00	$       0.12	($10080/$834000)	$             87,640.00	$      0.14	($87640/$626000)
Retained Earnings	$              2,25,180.00	$       0.27	($225180/$834000)	$          1,81,540.00	$      0.29	($181540/$626000)
Total Liabilities & Stockholder's Equity	$              8,34,000.00	$       1.00	($834000/$834000)	$          6,26,000.00	$      1.00	($626000/$626000)