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	$298,700		$170,060
Property, plant, and equipment	587,100		517,910
Intangible assets	144,200		85,030
Current liabilities	247,200		154,600
Long-term liabilities	370,800		270,550
Common stock	82,400		92,760
Retained earnings	329,600		255,090

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	$298,700	%	$170,060	%
Property, plant, and equipment	587,100	%	517,910	%
Intangible assets	144,200	%	85,030	%
Total assets	$1,030,000	%	$773,000	%
Current liabilities	$247,200	%	$154,600	%
Long-term liabilities	370,800	%	270,550	%
Common stock	82,400	%	92,760	%
Retained earnings	329,600	%	255,090	%
Total liabilities and stockholders' equity	$1,030,000	%	$773,000	%

Answer 1

Answer-

ALVAREZ COMPANY
COMPARATIVE BALANCE SHEETS
FOR YEARS ENDED DECEMBER 31
PARTICULARS	CURRENT YEAR	%	PREVIOUS YEAR	%
	$		$
ASSETS
Current assets	298700	29.0	170060	22.0
Property,plant and equipment	587100	57.0	517910	67.0
Intangible assets	144200	14.0	85030	11.0
Total assets	1030000	100.0	773000	100.0
Current liabilities	247200	24.0	154600	20.0
Long-term liabilities	370800	36.0	270550	35.0
Common stock	82400	8.0	92760	12.0
Retained earnings	329600	32.0	255090	33.0
Total liabilities & stockholders' equity	1030000	100.0	773000	100.0