Question

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

1		Current Year	Previous Year
2	Current assets	$1,262,500.00	$955,500.00
3	Property, plant, and equipment	2,878,500.00	3,185,000.00
4	Intangible assets	909,000.00	409,500.00
5	Current liabilities	858,500.00	728,000.00
6	Long-term liabilities	1,464,500.00	1,729,000.00
7	Common stock	505,000.00	455,000.00
8	Retained earnings	2,222,000.00	1,638,000.00

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.

Balance Sheet

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.

Alvaraz Company

Comparative Balance Sheet

For the Years Ended December 31

1		Current Year	Current Year	Previous Year	Previous Year
2		Amount	Percent	Amount	Percent
3	Current assets	$1,262,500.00		$955,500.00
4	Property, plant, and equipment	2,878,500.00		3,185,000.00
5	Intangible assets	909,000.00		409,500.00
6	Total assets	$5,050,000.00		$4,550,000.00
7	Current liabilities	$858,500.00		$728,000.00
8	Long-term liabilities	1,464,500.00		1,729,000.00
9	Common stock	505,000.00		455,000.00
10	Retained earnings	2,222,000.00		1,638,000.00
11	Total liabilities and stockholders’ equity	$5,050,000.00		$4,550,000.00

Answer 1

Alvaraz company
Comparative balancehseet
For year ended December 31
	Current year amount	Current year percent	Previous  year amount	Previous year percent
Cuurent assets	$         1,262,500.00	25%	$              955,500.00	21%
Property,plant & Equipment	$         2,878,500.00	57%	$            3,185,000.00	70%
Intangible assets	$           909,000.00	18%	$              409,500.00	9%
Total assets	$         5,050,000.00	100%	$            4,550,000.00	100%
Current liabilities	$           858,500.00	17%	$              728,000.00	16%
Long term liabilities	$         1,464,500.00	29%	$            1,729,000.00	38%
Common stock	$           505,000.00	10%	$              455,000.00	10%
Retained earnings	$         2,222,000.00	44%	$            1,638,000.00	36%
Total liability and shareholder equity	$         5,050,000.00	100%	$            4,550,000.00	100%

Percentage of Assets is calculated as follows

Dividing current year amount by total assets amount

Current asset current year percent=$1,262,500/5,050,000=25%

Same is done whith all other assets item for previous and current year items.

Percentage of laibilities and shareholder equity item is calculated as follows

Dividing current year amount by total liability and shareholder equity amount.

Curent year percent current laibilities=$858,500/5,050,500=17%

Same is done with all other laibility and shareholder equity item for current eyar and previosu years.