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 $311,100 $194,500 Property, plant, and equipment 580,720 521,260 Intangible assets 145,180 62,240 Current liabilities 248,880 155,600 Long-term liabilities 362,950 303,420 Common stock 124,440 108,920 Retained earnings 300,730 210,060 Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets and each liability and stockho equity item as a percent of the total liabilities and stockholders' equity. If required, round percentages to one decimal place.

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 $311,100 $194,500 Property, plant, and equipment 580,720 521,260 Intangible assets 145,180 62,240 Current liabilities 248,880 155,600 Long-term liabilities 362,950 303,420 Common stock 124,440 108,920 Retained earnings 300,730 210,060 Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets and each liability and stockho 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

The comparative temporary investments and inventory balances of a company follow. Current Year Previous Year Accounts payable $78,132 $76,600 Long-term debt 41,085 49,500 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 $ %
Please calculate the verticle and horizontal analysis of the Income statement. Consolidated Statements of Earnings (USD $) 12 Months Ended In Millions, except Per Share data, unless otherwise specified 12/31/2020 Vertical Analysis 12/31/2019 Vertical Analysis Horizontal Analysis Income Statement [Abstract] NET SALES $83,176 $78,812 Cost of Sales 54,222 51,422 GROSS PROFIT 28,954 27,390 Operating Expenses: Selling, General and Administrative 16,834 16,597 Depreciation and Amortization 1,651 1,627 Total Operating Expenses 18,485 18,224 OPERATING INCOME 10,469 9,166 Interest and Other (Income) Expense: Interest and Investment Income -337 -12 Interest Expense 830 711 Other 0 0 Interest and Other, net 493 699 EARNINGS BEFORE PROVISION FOR INCOME TAXES 9,976 8,467 Provision for Income Taxes 3,631 3,082 NET EARNINGS $6,345 $5,385…
Condensed financial data of Waterway Company for 2020 and 2019 are presented below. WATERWAY COMPANYCOMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2020 AND 2019 2020 2019 Cash $1,790 $1,150 Receivables 1,780 1,330 Inventory 1,620 1,890 Plant assets 1,930 1,700 Accumulated depreciation (1,200 ) (1,180 ) Long-term investments (held-to-maturity) 1,310 1,420 $7,230 $6,310 Accounts payable $1,210 $920 Accrued liabilities 210 240 Bonds payable 1,370 1,530 Common stock 1,860 1,670 Retained earnings 2,580 1,950 $7,230 $6,310 WATERWAY COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,970 Cost of goods sold 4,680 Gross margin 2,290 Selling and administrative expenses 940 Income from…
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…
The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $1,212,000 Liabilities: Current liabilities $120,000 Note payable, 6%, due in 15 years 606,000 Total liabilities $726,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $544,500 Common stock, $10 par (no change during year) 544,500 Retained earnings: Balance, beginning of year $580,000 Net income 226,000 $806,000 Preferred dividends $21,780 Common dividends 58,220 80,000 Balance, end of year 726,000 Total stockholders' equity $1,815,000 Sales $16,351,500 Interest expense $36,360 Assuming that total assets were $2,414,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal…
Ratio of Liabilities to Stockholders' Equity and Times Interest Earned The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: CurrentYear PreviousYear Accounts payable $698,000 $212,000 Current maturities of serial bonds payable 460,000 460,000 Serial bonds payable, 10% 1,920,000 2,380,000 Common stock, $1 par value 100,000 130,000 Paid-in capital in excess of par 1,130,000 1,130,000 Retained earnings 3,900,000 3,100,000 The income before income tax expense was $714,000 and $624,800 for the current and previous years, respectively. a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place. Current year fill in the blank 1 Previous year fill in the blank 2 b. Determine the times interest earned ratio for both years. Round to one decimal place. Current year fill in the blank 3 Previous year fill in the blank 4
What amount of total assets does the company report on its balance sheet? What amount of total liabilities does the company report on its balance sheet?
Selected financial data for Wilmington Corporation is presented below. WILMINGTON CORPORATION Balance Sheet As of December 31 Year 7 Year 6 Current Assets Cash and cash equivalents $ 634,527 $ 335,597 Marketable securities 166,106 187,064 Accounts receivable (net) 284,226 318,010 Inventories 466,942 430,249 Prepaid expenses 60,906 28,060 Other current assets 83,053 85,029 Total Current Assets 1,695,760 1,384,009 Property, plant and equipment 1,384,217 625,421 Long-term investment 568,003 425,000 Total Assets $3,647,980 $2,434,430 Current Liabilities Short-term borrowings $ 306,376 $ 170,419 Current portion of long-term debt 155,000 168,000 Accounts payable 279,522 314,883 Accrued liabilities 301,024 183,681 Income taxes payable 107,509 196,802 Total Current Liabilities 1,149,431…
Selected financial data for Wilmington Corporation is presented below. WILMINGTON CORPORATION Balance Sheet As of December 31 Year 7 Year 6 Current Assets Cash and cash equivalents $ 634,527 $ 335,597 Marketable securities 166,106 187,064 Accounts receivable (net) 284,226 318,010 Inventories 466,942 430,249 Prepaid expenses 60,906 28,060 Other current assets 83,053 85,029 Total Current Assets 1,695,760 1,384,009 Property, plant and equipment 1,384,217 625,421 Long-term investment 568,003 425,000 Total Assets $3,647,980 $2,434,430 Current Liabilities Short-term borrowings $ 306,376 $ 170,419 Current portion of long-term debt 155,000 168,000 Accounts payable 279,522 314,883 Accrued liabilities 301,024 183,681 Income taxes payable 107,509 196,802 Total Current Liabilities 1,149,431…
The comparative temporary investments and inventory balances of a company follow: Current Year Previous Year Accounts payable $60,260 $46,000 Long-term debt 54,510 79,000 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 $fill in the blank 1 fill in the blank 3% Long-term debt $fill in the blank 4 fill in the blank 6%
Ariel Corporation reports the following year-end balance sheet data. The company's working capital equals: Cash Accounts receivable $ Current 54,000 liabilities Long-term liabilities Inventory 74,000 Common stock 114,000 Retained earnings Total assets Equipment 159,000 $218,000 $197,000 $356,000 $108,000 $89,000 69,000 $ 89,000 $ 356,000 and equity 49,000 104,000 Total liabilities $ 356,000
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 $607,488 $558,507 Total investments 60,906 46,462 Total property, plant, and equipment 941,840 669,510 Total current liabilities 100,866 85,664 Total long-term liabilities 292,628 231,155 Preferred 9% stock, $100 par 90,744 90,744 Common stock, $10 par 568,743 568,743 Paid-in capital in excess of par-common stock 67,886 67,886 Retained earnings 489,367 230,287 Using the balance sheets for Kellman Company, if net income is $112,113 and interest expense is $33,379 for Year 2, what is the return on total assets for the year (round percent to two decimal points)? a. 10.31% b. 8.80% Oc. 10.09% Od. 6.96%