Question

Vertical Analysis of Balance Sheet

Balance sheet data for a company for the years ended December 31, 20Y2 and 20Y1, are shown below.

	20Y2		20Y1
Current assets	$ 1,500,000		$ 1,200,000
Property, plant, and equipment	12,500,000		10,800,000
Intangible assets	2,000,000		2,000,000
Current liabilities	1,000,000		850,000
Long-term liabilities	3,000,000		2,400,000
Common stock	2,500,000		2,500,000
Retained earnings	9,500,000		8,250,000

Prepare a comparative balance sheet for 20Y2 and 20Y1, 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 your answers to one decimal place.

Comparative Balance Sheet
December 31, 20Y2 and 20Y1
	20Y2 Amount	20Y2 Percent	20Y1 Amount	20Y1 Percent
Assets
Current assets	$1,500,000__________	%	$1,200,000__________	%
Property, plant, and equipment	12,500,000__________	%	10,800,000__________	%
Intangible assets	2,000,000__________	%	2,000,000___________	%
Total assets	$16,000,000__________	%	$14,000,000__________	%
Liabilities
Current liabilities	$1,000,000__________	%	$850,000___________	%
Long-term liabilities	3,000,000___________	%	2,400,000___________	%
Stockholders' equity
Common stock	2,500,000___________	%	2,500,000__________	%
Retained earnings	9,500,000___________	%	8,250,000___________	%
Total liabilities and stockholders' equity	$16,000,000___________	%	$14,000,000___________	%

Answer 1

	Comparative Balance Sheet
	December 31, 20Y2 and 20Y1
	20Y2 Amount	20Y2 Percent	20Y1 Amount	20Y1 Percent
Assets
Current assets	1500000	9.4%	1200000	8.6%
Property, plant, and equipment	12500000	78.1%	10800000	77.1%
Intangible assets	2000000	12.5%	2000000	14.3%
Total assets	16000000	100.0%	14000000	100.0%
Liabilities
Current liabilities	1000000	6.3%	850000	6.1%
Long-term liabilities	3000000	18.8%	2400000	17.1%
Stockholders' equity
Common stock	2500000	15.6%	2500000	17.9%
Retained earnings	9500000	59.4%	8250000	58.9%
Total liabilities and stockholders' equity	16000000	100.0%	14000000	100.0%