Question

1.

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	$277,440		$177,480
Property, plant, and equipment	432,480		397,800
Intangible assets	106,080		36,720
Current liabilities	163,200		79,560
Long-term liabilities	342,720		275,400
Common stock	73,440		67,320
Retained earnings	236,640		189,720

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	$277,440	%	$177,480	%
Property, plant, and equipment	432,480	%	397,800	%
Intangible assets	106,080	%	36,720	%
Total assets	$816,000	%	$612,000	%
Current liabilities	$163,200	%	$79,560	%
Long-term liabilities	342,720	%	275,400	%
Common stock	73,440	%	67,320	%
Retained earnings	236,640	%	189,720	%
Total liabilities and stockholders' equity	$816,000	%	$612,000	%

Answer 1