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	$295,120		$178,500
Property, plant, and equipment	533,120		464,100
Intangible assets	123,760		71,400
Current liabilities	199,920		107,100
Long-term liabilities	380,800		307,020
Common stock	114,240		99,960
Retained earnings	257,040		199,920

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

$295,120

%

$178,500

%

Property, plant, and equipment

533,120

%

464,100

%

Intangible assets

123,760

%

71,400

%

Total assets

$952,000

%

$714,000

%

Current liabilities

$199,920

%

$107,100

%

Long-term liabilities

380,800

%

307,020

%

Common stock

114,240

%

99,960

%

Retained earnings

257,040

%

199,920

%

Total liabilities and stockholders' equity

$952,000

%

$714,000

%

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	$295,120		$178,500
Property, plant, and equipment	533,120		464,100
Intangible assets	123,760		71,400
Current liabilities	199,920		107,100
Long-term liabilities	380,800		307,020
Common stock	114,240		99,960
Retained earnings	257,040		199,920

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	$295,120	%	$178,500	%
Property, plant, and equipment	533,120	%	464,100	%
Intangible assets	123,760	%	71,400	%
Total assets	$952,000	%	$714,000	%
Current liabilities	$199,920	%	$107,100	%
Long-term liabilities	380,800	%	307,020	%
Common stock	114,240	%	99,960	%
Retained earnings	257,040	%	199,920	%
Total liabilities and stockholders' equity	$952,000	%	$714,000	%

Answer rating: 100% (QA)

ANSWER Heres the comparative balance sheet for Alvarez Company with each item ... View the full answer