Question

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	$287,430		$176,310
Property, plant, and equipment	487,760		437,510
Intangible assets	95,810		39,180
Current liabilities	191,620		104,480
Long-term liabilities	304,850		241,610
Common stock	95,810		91,420
Retained earnings	278,720		215,490

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	$287,430	%	$176,310	%
Property, plant, and equipment	487,760	%	437,510	%
Intangible assets	95,810	%	39,180	%
Total assets	$871,000	%	$653,000	%
Current liabilities	$191,620	%	$104,480	%
Long-term liabilities	304,850	%	241,610	%
Common stock	95,810	%	91,420	%
Retained earnings	278,720	%	215,490	%
Total liabilities and stockholders' equity	$871,000	%	$653,000	%

Answer 1

Alvaraz Company
Comparative Balance Sheet
For the Years Ended December 31
	Current	Current	Previous	Previous
	year	year	year	year
	Amount	Percent	Amount	Percent
Current assets	287430	33.0%	176310	27.0%
Property, plant, and equipment	487760	56.0%	437510	67.0%
Intangible assets	95810	11.0%	39180	6.0%
Total assets	871000	100.0%	653000	100.0%
Current liabilities	191620	22.0%	104480	16.0%
Long-term liabilities	304850	35.0%	241610	37.0%
Common stock	95810	11.0%	91420	14.0%
Retained earnings	278720	32.0%	215490	33.0%
Total liabilities and stockholders' equity	871000	100.0%	653000	100.0%