* CengageNOW2 | Onlin x2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false人еВookShow Me HowVertical Analysis of Balance SheetBalance sheet data for Kwan Company on December 31, the end of two recent fiscal years, follow:Current YearPrevious YearCurrent assets$288,750$177,120Property, plant, and equipment498,750452,640Intangible assets87,50026,240Current liabilities175,00085,280Long-term liabilities376,250301,760Common stock78,75072,160Retained earnings245,000196,800Prepare 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.Kwan CompanyComparative Balance SheetFor the Years Ended December 31CurrentCurrentPrevious PreviousyearyearyearyearAmount PercentAmountPercentCurrent assets$288,750$177,120%4:45 PM12/12/2020DELLprt scF10homeF11endinsertdelF6F8F9F12%23%24&458RTY41FGJK2B N M * CengageNOWv2 | Onlin X+ v-2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=falseеВookShow Me HowPrepare 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.Kwan CompanyComparative Balance SheetFor the Years Ended December 31CurrentCurrentPrevious PreviousyearyearyearyearAmount PercentAmountPercentCurrent assets$288,750%$177,120Property, plant, and equipment498,750%452,640%Intangible assets87,500%26,240Total assets$875,000%$656,000Current liabilities$175,000%$85,280%Long-term liabilities376,250%301,760%Common stock78,750%72,160%Retained earnings245,000196,800Total liabilities and stockholders' equity $875,000%$656,000%4:45 PM12/12/2020DELLF4F5prt scF6F8homeendinsertF9F10deleteF11F129backspaRTYP6.GCJL2BM

Vertical analysis: This study determines the percentage of each line item on the financial statements. Net sales will serve as the income statement base to compute the percentage. Total assets for the assets side and total liabilities and shareholders' equity for the liabilities side make up the balance sheet base.By taking into account percentages rather than just absolute dollar amounts, the vertical analysis allows for a more accurate comparison of the financial statements of businesses operating in the same sector.Item % = Item amountTotal assets or Total liabilities and shareholders' equity × 100 Formula: Prepare the comparative balance sheet:

Business

Accounting

Balance sheet data for Kwan Company on December 31, the end of two recent fiscal years, follow: Current Year Previous Year Current assets $288,750 $177,120 Property, plant, and equipment 498,750 452,640 Intangible assets 87,500 26,240 Current liabilities 175,000 85,280 Long-term liabilities 376,250 301,760 Common stock 78,750 72,160 Retained earnings 245,000 196,800 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.

Balance sheet data for Kwan Company on December 31, the end of two recent fiscal years, follow: Current Year Previous Year Current assets $288,750 $177,120 Property, plant, and equipment 498,750 452,640 Intangible assets 87,500 26,240 Current liabilities 175,000 85,280 Long-term liabilities 376,250 301,760 Common stock 78,750 72,160 Retained earnings 245,000 196,800 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Some selected financial statement items belonging to Tower Company are given in the table below. According to this information, which of the following is Return on Assets (ROA) in 2021? Inventory 12,500 Total Assets in 2021 100,000 Current Liabilities 30,000 Total Assets in 2020 80,000 Net Profit 18,000 Shareholders' Equity 65,000 Select one: a. 24% b. 20% c. 11% d. 15%
The current year financial statements for Blue Water Company and Prime Fish Company are presented below. Balance sheet Cash Accounts receivable (net) Inventory Property & equipment (net) Blue Water Prime Fish $ 42,400 45,000 $ 19,600 35,200 Other assets Total assets Current liabilities Long-term debt (interest rate: 10%) Capital stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity $ 425,800 Income statement Sales revenue (1/3 on credit) Cost of goods sold Operating expenses Net income Other data Per share stock price at end of current year Average income tax rate $ 426,000 (234,000) (163,800) 92,000 161,000 85,400 $ 425,800 $ 92,000 74,800 157,800 30,400 70,800 48,400 417,800 319,000 $ 840,000 $ 70,000 62,800 526,000 107,400 73,800 $ 840,000 $ 788,000 (401,400) (312,400) $ 28,200 $ 74,200 $ 23.4 30% $ 29 30% Dividends declared and paid in current year $ 34,400 $ 155,000 Both companies are in the fish catching and manufacturing…
Prepare a vertical analysis for Carson Corporation’s balance sheet to determine the component percentages of its assets, liabilities, and stockholders’ equity. Round percentages to the nearest one-hundredth percent. Carson Corporation Balance Sheet as of December 31, 2020 Assets Total current assets $ 124,000 Long-term investments 351,000 Property, plant, and equipment, net 950,000 Total assets $1,425,000 Liabilities Total current liabilities $ 460,000 Long-term debt 230,000 Total liabilities $ 690,000…
Balance sheet data for Kwan Company on December 31, the end of two recent fiscal years, follow: Current Year Previous Year Current assets $323,520 $181,920 Property, plant, and equipment 566,160 523,020 Intangible assets 121,320 53,060 Current liabilities 242,640 144,020 Long-term liabilities 333,630 242,560 Common stock 121,320 121,280 Retained earnings 313,410 250,140 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.
Lydex Company’s financial statements for the last two years are as follows: Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash $ 1,020,000 $ 1,260,000 Marketable securities 0 300,000 Accounts receivable, net 2,940,000 2,040,000 Inventory 3,660,000 2,100,000 Prepaid expenses 270,000 210,000 Total current assets 7,890,000 5,910,000 Plant and equipment, net 9,640,000 9,110,000 Total assets $ 17,530,000 $ 15,020,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 4,070,000 $ 3,100,000 Note payable, 10% 3,700,000 3,100,000 Total liabilities 7,770,000 6,200,000 Stockholders' equity: Common stock, $75 par value 7,500,000 7,500,000 Retained earnings 2,260,000 1,320,000 Total stockholders' equity 9,760,000 8,820,000 Total liabilities and stockholders' equity $ 17,530,000 $ 15,020,000 Lydex Company Comparative Income Statement and Reconciliation This…
Computing Financial Statement Measures The following pretax amounts are taken from the adjusted trial balance of Mastery Inc. on December 31, 2020, its annual year-end. Assume that the income tax rate for all items is 25%. The average number of common shares outstanding during the year was 20,000. Balance, retained earnings, December 31, 2019 $ 45,000 Sales revenue 300,000 Cost of goods sold 105,000 Selling expenses 36,000 Administrative expenses 34,000 Gain on sale of investments 10,000 Unrealized holding gain on debt investments, net of tax 4,250 Prior period adjustment, understatement of depreciation from prior period (2019) 20,000 Dividends declared and paid 16,000 Required Compute the following amounts for the year-end financial statements of 2020. Do not use negative signs with any of your answers. Round the per share amount to two decimal places. Item Amount a. Gross profit (2020). b. Operating income (2020). c. Net…
The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Company Year 2 Year 1 Total current assets $629,337 $589,332 Total investments 60,228 40,363 Total property, plant, and equipment 861,159 681,074 Total current liabilities 102,094 83,445 Total long-term liabilities 323,402 228,617 Preferred 9% stock, $100 par 95,941 95,941 Common stock, $10 par 559,966 559,966 Paid-in capital in excess of par-common stock 66,297 66,297 Retained earnings 403,024 276,503 Using the balance sheets for Kellman Company, if net income is $119,929 and interest expense is $36,940 for Year 2, what is the return on total assets for the year (round percent to two decimal points)? Oa. 10.96% Ob. 7.73% Oc. 9.15% Od. 11.29%
Selected data from the Carmen Company at year-end are as follows: Total assets Average total assets Net income Sales Average common stockholders' equity Net cash provided by operating activities Shares of common stock outstanding Long-term investments $2,000,000 $2,200,000 $250,000 $1,300,000 $1,000,000 $275,000 10,000 $400,000 Required: Compute the (a) asset turnover, (b) return on total assets, (c) return on common stockholders' equity, and (d) earnings per share on common stock. Assume the company had no preferred stock or interest expense. Round dol values to the nearest cent and other final answers to one decimal place. a. Asset turnover ratio b. Return on total assets c. Return on common stockholders' equity d. Earnings per share on common stock 1000 % % per share K
Balance sheet data for Kwan Company on December 31, the end of two recent fiscal years, follow: Current Year Previous Year Current assets $272,000 $172,260 Property, plant, and equipment 493,000 440,220 Intangible assets 85,000 25,520 Current liabilities 153,000 76,560 Long-term liabilities 365,500 280,720 Common stock 102,000 102,080 Retained earnings 229,500 178,640 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. Kwan Company Comparative Balance Sheet For the Years Ended December 31 Current Current Previous Previous year year year year Amount Percent Amount Percent Current assets $272,000 $172,260 Property, plant, and equipment 493,000 440,220 Intangible assets 85,000 25,520 econ.doox P Type here to search Show all 0 耳は 2 a 59°F 6:07 AM (Dツ 10/30/2021 2 bp 144 prt sc…
Comparative Statements of Retained Earnings for Renn-Dever Corporation were reported as follows for the fiscal years ending December 31, 2022, 2023, and 2024. RENN-DEVER CORPORATION Statements of Retained Earnings For the Years Ended December 31 2024 2023 2022 Balance at beginning of year $ 6,970,692 $ 5,584,452 $ 5,694,552 Net income (loss) 3,315,700 2,310,900 (110,100) Deductions: Stock dividend (35,400 shares) 249,000 Common shares retired, September 30 (140,000 shares) 219,660 Common stock cash dividends 896,950 705,000 0 Balance at end of year $ 9,140,442 $ 6,970,692 $ 5,584,452 At December 31, 2021, paid-in capital consisted of the following: Common stock, 1,910,000 shares at $1 par $ 1,910,000 Paid in capital—excess of par 7,490,000 No preferred stock or potential common shares were outstanding during any of the periods shown. Required: Compute Renn-Dever’s earnings per share as it would have appeared in income statements for the…
* Question Completion Status: Presented below is selected data from the financial statements of Morgan Corporation for the current and prior year: Current assets Total assets Current liabilities Total liabilities Total stockholders' equity Net sales Cost of Goods Sold Wages expense Supplies expense Depreciation expense Interest expense Net income 12/31/X2 $430,000 $2,500,000 $210,000 $1,210,000 $1,290,000 $4,800,000 $3,200,000 $973,000 $60,000 $35,000 $12,000 $520,000 12/31/X1 $220,000 e $1,950,000 $180,000 $1,180,000 $770,000 $3,900,000 $2,690,000 $869,000 $50,000 $32,000 $9,000 $250,000 Calculate the debt ratio for 20X2. Calculate the Debt Ratio as a percentage and round to the nearest whole percent. DO NOT enter your answer as a decimal and DO NOT include the % sign. Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answ
The comparative temporary investments and inventory balances of a company follow. Current Year Previous Year Accounts payable $70,725 $61,500 Long-term debt 45,900 51,000 Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance sheet with horizontal analysis? Amount of Change Increase/Decrease Percentage Accounts payable $ % Long-term debt $ %