Question

Balance sheet data for Alvarez Company on December 31, the end of two recent fiscal years, follow:

1		Current Year	Previous Year
2	Current assets	$1,637,500.00	$1,210,000.00
3	Property, plant, and equipment	3,864,500.00	4,235,000.00
4	Intangible assets	1,048,000.00	605,000.00
5	Current liabilities	1,179,000.00	847,000.00
6	Long-term liabilities	1,768,500.00	1,996,500.00
7	Common stock	655,000.00	665,500.00
8	Retained earnings	2,947,500.00	2,541,000.00

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.

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.

Question not attempted.

Alvaraz Company

Comparative Balance Sheet

For the Years Ended December 31

1		Current Year	Current Year	Previous Year	Previous Year
2		Amount	Percent	Amount	Percent
3	Current assets	$1,637,500.00		$1,210,000.00
4	Property, plant, and equipment	3,864,500.00		4,235,000.00
5	Intangible assets	1,048,000.00		605,000.00
6	Total assets	$6,550,000.00		$6,050,000.00
7	Current liabilities	$1,179,000.00		$847,000.00
8	Long-term liabilities	1,768,500.00		1,996,500.00
9	Common stock	655,000.00		665,500.00
10	Retained earnings	2,947,500.00		2,541,000.00
11	Total liabilities and stockholders’ equity	$6,550,000.00		$6,050,000.00

Answer 1

	Current	Current	Previous	Previous
	year	year	year	year
	Amount	Percent	Amount	Percent
Current assets	$1,637,500	25.0%	$1,210,000	20.0%
Property, plant, and equipment	3,864,500	59.0%	4,235,000	70.0%
Intangible assets	1,048,000	16.0%	605,000	10.0%
Total assets	$6,550,000	100.0%	$6,050,000	100.0%
Current liabilities	$1,179,000	18.0%	$847,000	14.0%
Long-term liabilities	1,768,500	27.0%	1,996,500	33.0%
Common stock	655,000	10.0%	665,500	11.0%
Retained earnings	2,947,500	45.0%	2,541,000	42.0%
Total liabilities and stockholders' equity	$6,550,000	100.0%	$6,050,000	100.0%