Vertical analysis of balance sheet Balance sheet data for Alvarez Company on December 31, the end of two recent fiscal years, follow: Current Year Previous Year Current assets Property, plant, and equipment Intangible assets Current llabilities Long-term liabilities Common stock Retained earnings Line Item Description $2,800,000 5,200,000 2,000,000 1,800,000 3,600,000 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. When required, round percentages to one decimal place. Current assets Property, plant, and equipment Intangible assets 980,000 3,620,000 Total assets Alvarez Company Comparative Balance Sheet For the Years Ended December 31 Current Current Year Year Amount Percent $2,800,000 5,200,000 2,000,000 $1,840,000 6,072,000 1,288,000 1,380,000 3,680,000 920,000 3,220,000 Current liabilities Long-term liabilities $10,000,000 $1,800,000 3,600,000 980,000 3,620,000 Common stock Retained earnings Total liabilities and stockholders' equity $10,000,000 Previous Previous Year Amount % $1,840,000 Year Percent % 6,072,000 % 1,288,000 % $9,200,000 % $1,380,000 % 3,680,000 % 920,000 % 3,220,000 % $9,200,000 % % % % % % % % %
Vertical analysis of balance sheet Balance sheet data for Alvarez Company on December 31, the end of two recent fiscal years, follow: Current Year Previous Year Current assets Property, plant, and equipment Intangible assets Current llabilities Long-term liabilities Common stock Retained earnings Line Item Description $2,800,000 5,200,000 2,000,000 1,800,000 3,600,000 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. When required, round percentages to one decimal place. Current assets Property, plant, and equipment Intangible assets 980,000 3,620,000 Total assets Alvarez Company Comparative Balance Sheet For the Years Ended December 31 Current Current Year Year Amount Percent $2,800,000 5,200,000 2,000,000 $1,840,000 6,072,000 1,288,000 1,380,000 3,680,000 920,000 3,220,000 Current liabilities Long-term liabilities $10,000,000 $1,800,000 3,600,000 980,000 3,620,000 Common stock Retained earnings Total liabilities and stockholders' equity $10,000,000 Previous Previous Year Amount % $1,840,000 Year Percent % 6,072,000 % 1,288,000 % $9,200,000 % $1,380,000 % 3,680,000 % 920,000 % 3,220,000 % $9,200,000 % % % % % % % % %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Vertical analysis of balance sheet
Balance sheet data for Alvarez Company on December 31, the end of two recent fiscal years, follow:
Current Year
Previous Year
Current assets
Property, plant, and equipment
Intangible assets
Current liabilities
Long-term liabilities.
Common stock
Retained earnings
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. When
required, round percentages to one decimal place.
$2,800,000
5,200,000
2,000,000
1,800,000
3,600,000
980,000
3,620,000
Line Item Description
$1,840,000
6,072,000
1,288,000
1,380,000
3,680,000
920,000
3,220,000
Alvarez Company
Comparative Balance Sheet
For the Years Ended December 31
Current Current Previous
Year
Year
Amount Percent
$2,800,000
Current liabilities
5,200,000
2,000,000
$10,000,000
$1,800,000
3,600,000
980,000
3,620,000
Long-term liabilities
Common stock
Retained earnings
Total liabilities and stockholders' equity $10,000,000
Current assets
Property, plant, and equipment
Intangible assets
Total assets
Previous
Year
Year
Amount Percent
% $1,840,000
% 6,072,000
% 1,288,000
% $9,200,000
% $1,380,000
% 3,680,000
% 920,000
% 3,220,000
% $9,200,000
%
%
%
%
%
%
%
%
%
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