Question

Vertical Analysis of Balance Sheet

Balance sheet data for Hanes Company on December 31, the end of the fiscal year, are shown below.

	20Y2		20Y1
Current assets	356,660		204,620
Property, plant, and equipment	576,950		527,290
Intangible assets	115,390		55,090
Current liabilities	209,800		125,920
Long-term liabilities	440,580		354,150
Common stock	115,390		110,180
Retained earnings	283,230		196,750

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. If required, round percentages to one decimal place.

Hanes Company
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
	20Y2 Amount	20Y2 Percent	20Y1 Amount	20Y1 Percent
Assets
Current assets	$356,660	%	$204,620	%
Property, plant, and equipment	576,950	%	527,290	%
Intangible assets	115,390	%	55,090	%
Total assets	$1,049,000	%	$787,000	%
Liabilities
Current liabilities	$209,800	%	$125,920	%
Long-term liabilities	440,580	%	354,150	%
Stockholders' equity
Common stock	115,390	%	110,180	%
Retained earnings	283,230	%	196,750	%
Total liabilities and stockholders' equity	$1,049,000	%	$787,000	%

Answer 1

Hanes Company
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
	20Y2 Amount	20Y2 Percent	20Y1 Amount	20Y1 Percent
Assets
Current assets	$   356,660.00	34%	$204,620.00	26%
Property, plant, and equipment	$   576,950.00	55%	$527,290.00	67%
Intangible assets	$   115,390.00	11%	$ 55,090.00	7%
Total assets	$1,049,000.00	100%	$787,000.00	100%
Liabilities
Current liabilities	$   209,800.00	20%	$125,920.00	16%
Long-term liabilities	$   440,580.00	42%	$354,150.00	45%
Stockholders' equity
Common stock	$   115,390.00	11%	$110,180.00	14%
Retained earnings	$   283,230.00	27%	$196,750.00	25%
Total liabilities and stockholders' equity	$1,049,000.00	100%	$787,000.00	100%