Vertical Analysis of Balance Sheet Balance sheet data for Alvarez Company on Dec

Question

Vertical Analysis of Balance Sheet

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

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.

Current Year Previous Year Current assets $284,780 $154,770 Property, plant, and equipment 599,020 530,640 Intangible assets 98,200 51,590 Current liabilities 176,760 81,070 Long-term liabilities 451,720 368,500 Common stock 88,380 95,810 Retained earnings 265,140 191,620

Explanation / Answer

Answer:-

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 $284,780 29 % $154,770 21 % Property, plant, and equipment 599,020 61 % 530,640 72 % Intangible assets 98,200 10 % 51,590 7 % Total assets $982,000 100 % $737,000 100 % Current liabilities $176,760 18 % $81,070 11 % Long-term liabilities 451,720 46 % 368,500 50 % Common stock 88,380 9 % 95,810 13 % Retained earnings 265,140 27 % 191,620 26 % Total liabilities and stockholders' equity $982,000 100 % $737,000 100 %

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