Question

# Vertical Analysis of Balance Sheet Balance sheet data for a company for the years ended December...

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___________ %

 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%

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