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	$327,950		$203,870
Property, plant, and equipment	477,870		435,860
Intangible assets	131,180		63,270
Current liabilities	215,510		119,510
Long-term liabilities	365,430		281,200
Common stock	103,070		98,420
Retained earnings	252,990		203,870

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	$327,950	%	$203,870	%
Property, plant, and equipment	477,870	%	435,860	%
Intangible assets	131,180	%	63,270	%
Total assets	$937,000	%	$703,000	%
Current liabilities	$215,510	%	$119,510	%
Long-term liabilities	365,430	%	281,200	%
Common stock	103,070	%	98,420	%
Retained earnings	252,990	%	203,870	%
Total liabilities and stockholders' equity	$937,000	%	$703,000	%

Answer 1