Vertical Analysis of Balance SheetBalance sheet data for Alvarez Company on December 31, the end of two recent fiscal years, follows:Current Year Previous Year$300,630$170,750Current assets510,160478,100Property, plant, and equipment100,21034,150Intangible assets191,310116,110Current liabilities373,510280,030Long-term liabilitiesCommon stock81,99075,130Retained earnings264,190211,730Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets andeach liability and stockholders' equity item as a percent of the total liabilities and stockholders' equity. Ifrequired, round percentages to one decimal place.Alvaraz CompanyComparative Balance SheetFor the Years Ended December 31Previous yearPrevious yearCurrent yearPercentCurrent yearAmountAmountPercentCurrent assets$300,630$170,750Property, plant, and equipment510,160478,100100,21034,150Intangible assetsTotal assets$911,000$683,000Current liabilities$191,310$116,110Long-term liabilities373,510280,030Common stock81,99075,130Retained earnings264,190211,730Total liabilities and stockholders'$911,000$683,000equity96

Comparative balance sheet is a kind of balance sheet that encourage investors to analyze performance…

Answered: Vertical Analysis of Balance Sheet…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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…
Return on Assets Calculate the company's return on assets for 2020 and compare the result to the industry average.
Five Measures of Solvency or Profitability The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following: Bonds payable, 8% $900,000 Preferred $5 stock, $100 par $228,000 Common stock, $8 par $319,200.00 Income before income tax was $201,600, and income taxes were $30,600 for the current year. Cash dividends paid on common stock during the current year totaled $33,516. The common stock was selling for $28 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio times b. Earnings per share on common stock $ c. Price-earnings ratio d. Dividends per share of common stock $ e. Dividend yield
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 $ %
c
what is the return in assets for each year?
View Policies Current Attempt in Progress A portion of the combined statement of income and retained earnings of Blossom Inc. for the current year follows. Income from continuing operations Loss from discontinued operations, net of applicable income tax (Note 1) Net income Retained earnings at the beginning of the year Dividends declared: On preferred stock-$6.00 per share On common stock-$1.75 per share Retained earnings at the end of the year Extraordinary Loss Income before Extraordinary Loss Net Income /(Loss) BLOSSOM INC. Income Statement December 31 eTextbook and Media Save for Later Note 1. During the year, Blossom Inc. suffered a major loss from discontinued operations of $1,325,200 after applicable income tax reduction of $1,190,000. $276,000 At the end of the current year, Blossom Inc. has outstanding 8,530,000 shares of $10 par common stock and 46,000 shares of 6% preferred. On April 1 of the current year, Blossom Inc. issued 990,000 shares of common stock for $33 per share…
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: Current Year Prior Year Accounts payable $618,000 $300,000 Current maturities of serial bonds payable 550,000 550,000 Serial bonds payable, 10% 2,480,000 3,030,000 Common stock, $1 par value 90,000 120,000 Paid-in capital in excess of par 1,000,000 1,010,000 Retained earnings 3,470,000 2,750,000 The income before income tax expense was $757,500 and $662,800 for the current and prior 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 Prior 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 Prior year fill in the blank 4 c. The ratio of liabilities to stockholders' equity have improved and the…
Five Measures of Solvency or Profitability The balance sheet for Quigg Inc. at the end of the current fiscal year indicated the following: Bonds payable, 8% $1,700,000 Preferred $10 stock, $50 par 154,000 Common stock, $15 par 288,750 Income before income tax expense was $489,600,and income taxes were $73,800 for the current year. Cash dividends paid on common stock during the current year totaled $92,400. The common stock was selling for $240 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio 4.6 times b. Earnings per share on common stock 19.03 x c. Price-earnings ratio 12.6 X d. Dividends per share of common stock 4.80 V e. Dividend yield 2 V %
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 $605,971 $560,666 Total investments 65,017 44,141 Total property, plant, and equipment 889,919 763,728 Total current liabilities 117,075 83,405 Total long-term liabilities 283,494 227,812 Preferred 9% stock, $100 par 82,758 82,758 Common stock, $10 par 554,007 554,007 Paid-in capital in excess of par-common stock 66,056 66,056 Retained earnings 457,517 354,497 Using the balance sheets for Kellman Company, if net income is $119,549 and interest expense is $36,122 for Year 2, and the market price of common shares is $46, what is the price-earnings ratio on common stock for Year 2 (rounded to two decimal places)? a.2.02 b.10.78 c.10.63 d.22.77
s
Five Measures of Solvency or Profitability The balance sheet for Quigg Inc. at the end of the current fiscal year indicated the following: Bonds payable, 8% $1,700,000 Preferred $10 stock, $50 par 154,000 Common stock, $15 par 288,750 Income before income tax expense was $489,600,and income taxes were $73,800 for the current year. Cash dividends paid on common stock during the current year totaled $92,400. The common stock was selling for $240 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio times b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock e. Dividend yield % %24 %24

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