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	$308,700		$185,280
Property, plant, and equipment	596,820		532,680
Intangible assets	123,480		54,040
Current liabilities	246,960		131,240
Long-term liabilities	391,020		324,240
Common stock	82,320		77,200
Retained earnings	308,700		239,320

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	$308,700	%	$185,280	%
Property, plant, and equipment	596,820	%	532,680	%
Intangible assets	123,480	%	54,040	%
Total assets	$1,029,000	%	$772,000	%
Current liabilities	$246,960	%	$131,240	%
Long-term liabilities	391,020	%	324,240	%
Common stock	82,320	%	77,200	%
Retained earnings	308,700	%	239,320	%
Total liabilities and stockholders' equity	$1,029,000	%	$772,000	%

Answer 1

Alvaraz Company

Comparative Balance Sheet

For the Years Ended December 31

Particulars	Current year ($)	% of total	Previous ($)	% Total
EQUITY & LIABILITY
(1)Share Holders Fund
Common stock	82320	8%	77200	10%
Retained Reanings	308700	30%	239320	31%
(2) Non Current Liabilities
Long term Liabilities	391020	38%	324240	42%
(3)Current LIabilities
Current Liabilities	246960	24%	131240	17%
Total Equity and Liabilities	1029000	100%	772000	100%
ASSETS
(1) Non current Assts
Fixed Assets
-Property, Plant & Equipment	596820	58%	532680	69%
-Intangible assets	123480	12%	54040	7%
(2)Current Assets
Current Assets	308700	30%	185280	24%
Total Assets	1029000	100%	772000	100%