Balance sheet data for Alvarez Company on December 31, the end of two recent fis

Question

Balance sheet data for Alvarez Company on December 31, the end of two recent fiscal years, follow: Current Year Previous Year Current assets $2,500,000 $1,840,000 Property, plant, and equipment 5,600,000 6,072,000 Intangible assets 1,900,000 1,288,000 Current liabilities 2,000,000 1,380,000 Long-term liabilities 3,400,000 3,680,000 Common stock 920,000 920,000 Retained earnings 3,680,000 3,220,000 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. Round percentages to one decimal place.

Explanation / Answer

COMPARATIVE BALANCE SHEET

(ALVAREZ COMPANY)

DATE - DECEMBER 31, CURRENT YEAR PREVIOUS YEAR

ASSETS AMOUNTS($) % OF TOTAL AMOUNTS($) % OF TOTAL CURRENT ASSETS 2,500,000 25.0 1,840,000 20.0 PROPERTY, PLANT AND EQUIPMENT 5,600,000 56.0 6,072,000 66.0 INTANGIBLE ASSETS 1,900,000 19.0 1,288,000 14.0 TOTAL 10,000,000 100.0 9,200,000 100.0 LIABILITIES AND EQUITY AMOUNTS($) % OF TOTAL AMOUNTS($) % OF TOTAL CURRENT LIABILITIES 2,000,000 20.0 1,380,000 15.0 LONG-TERM LIABILITIES 3,400,000 34.0 3,680,000 40.0 COMMON STOCK 920,000 9.2 920,000 10.0 RETAINED EARNINGS 3,680,000 36.8 3,220,000 35.0 TOTAL 10,000,000 100.0 9,200,000 100.0 *-----------------------------------------*

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