Question

17-3 17-04 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	$340,000		$210,000
Property, plant, and equipment	520,000		487,500
Intangible assets	140,000		52,500
Current liabilities	200,000		97,500
Long-term liabilities	410,000		322,500
Common stock	110,000		105,000
Retained earnings	280,000		225,000

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	$340,000	%	$210,000	%
Property, plant, and equipment	520,000	%	487,500	%
Intangible assets	140,000	%	52,500	%
Total assets	$1,000,000	%	$750,000	%
Current liabilities	$200,000	%	$97,500	%
Long-term liabilities	410,000	%	322,500	%
Common stock	110,000	%	105,000	%
Retained earnings	280,000	%	225,000	%
Total liabilities and stockholders' equity	$1,000,000	%	$750,000	%

Answer 1

		Current	Current	Previous	Previous
		year	year	year	year
		Amount	Percent	Amount	Percent
	Current assets	$340,000	34.0%	$210,000	28.0%
	Property, plant, and equipment	520,000	52.0%	487,500	65.0%
	Intangible assets	140,000	14.0%	52,500	7.0%
	Total assets	$1,000,000	100.0%	$750,000	100.0%
	Current liabilities	$200,000	20.0%	$97,500	13.0%
	Long-term liabilities	410,000	41.0%	322,500	43.0%
	Common stock	110,000	11.0%	105,000	14.0%
	Retained earnings	280,000	28.0%	225,000	30.0%
	Total liabilities and stockholders' equity	$1,000,000	100.0%	$750,000	100.0%