Homework Help is Here – Start Your Trial Now!
Business
Accounting
Vertical Analysis of Balance Sheet Balance sheet data for Kwan Company on December 31, the end of two recent fiscal years, follow: Current Year Previous Year Current assets $355,300 $211,680 Property, plant, and equipment 543,400 509,600 Intangible assets 146,300 62,720 Current liabilities 188,100 94,080 Long-term liabilities 428,450 321,440 Common stock 104,500 109,760 Retained earnings 323,950 258,720 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 year year Amount Percent Previous Previous year year Amount Percent $211,680 Current assets $355,300 % Property, plant, and equipment 543,400 % 146,300 Intangible assets % % % 509,600 % 62,720

Vertical Analysis of Balance Sheet Balance sheet data for Kwan Company on December 31, the end of two recent fiscal years, follow: Current Year Previous Year Current assets $355,300 $211,680 Property, plant, and equipment 543,400 509,600 Intangible assets 146,300 62,720 Current liabilities 188,100 94,080 Long-term liabilities 428,450 321,440 Common stock 104,500 109,760 Retained earnings 323,950 258,720 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 year year Amount Percent Previous Previous year year Amount Percent $211,680 Current assets $355,300 % Property, plant, and equipment 543,400 % 146,300 Intangible assets % % % 509,600 % 62,720

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 4E
See similar textbooks
icon
Related questions
Question
## Vertical Analysis of Balance Sheet The following balance sheet data for Kwan Company on December 31, year-end of two recent fiscal years, is provided below: | **Category** | **Current Year** | **Previous Year** | |--------------------------------|-------------------|--------------------| | Current assets | $355,300 | $211,680 | | Property, plant, and equipment | $543,400 | $509,600 | | Intangible assets | $146,300 | $62,720 | | Current liabilities | $188,100 | $94,080 | | Long-term liabilities | $428,450 | $321,440 | | Common stock | $104,500 | $109,760 | | Retained earnings | $323,950 | $258,720 | ### Instructions: Prepare a comparative balance sheet for both years, indicating each asset as a percentage of total assets and each liability and stockholders' equity item as a percentage of total liabilities and stockholders' equity. If necessary, round percentages to one decimal place. ### Kwan Company ### Comparative Balance Sheet ### For the Years Ended December 31 | **Category** | **Current Year Amount** | **Current Year Percent** | **Previous Year Amount** | **Previous Year Percent** | |--------------|--------------------------|---------------------------|--------------------------|---------------------------| | Current assets | $355,300 | ______% | $211,680 | ______% | | Property, plant, and equipment | $543,400 | ______% | $509,600 | ______% | | Intangible assets | $146,300 | ______% | $62,720 | ______% | ### Additional Details: This data includes essential entries from the balance sheet, which add up the current assets, property, plant and equipment, intangible assets, current liabilities, long-term liabilities, common stock, and retained earnings as part of evaluating the company's financial position over two fiscal years.
Transcribed Image Text:## Vertical Analysis of Balance Sheet The following balance sheet data for Kwan Company on December 31, year-end of two recent fiscal years, is provided below: | **Category** | **Current Year** | **Previous Year** | |--------------------------------|-------------------|--------------------| | Current assets | $355,300 | $211,680 | | Property, plant, and equipment | $543,400 | $509,600 | | Intangible assets | $146,300 | $62,720 | | Current liabilities | $188,100 | $94,080 | | Long-term liabilities | $428,450 | $321,440 | | Common stock | $104,500 | $109,760 | | Retained earnings | $323,950 | $258,720 | ### Instructions: Prepare a comparative balance sheet for both years, indicating each asset as a percentage of total assets and each liability and stockholders' equity item as a percentage of total liabilities and stockholders' equity. If necessary, round percentages to one decimal place. ### Kwan Company ### Comparative Balance Sheet ### For the Years Ended December 31 | **Category** | **Current Year Amount** | **Current Year Percent** | **Previous Year Amount** | **Previous Year Percent** | |--------------|--------------------------|---------------------------|--------------------------|---------------------------| | Current assets | $355,300 | ______% | $211,680 | ______% | | Property, plant, and equipment | $543,400 | ______% | $509,600 | ______% | | Intangible assets | $146,300 | ______% | $62,720 | ______% | ### Additional Details: This data includes essential entries from the balance sheet, which add up the current assets, property, plant and equipment, intangible assets, current liabilities, long-term liabilities, common stock, and retained earnings as part of evaluating the company's financial position over two fiscal years.
### Financial Statement Analysis #### Total Assets - 2023: $1,045,000 - 2022: $784,000 #### Current Liabilities - 2023: $188,100 - 2022: $94,080 #### Long-term Liabilities - 2023: $428,450 - 2022: $321,440 #### Common Stock - 2023: $104,500 - 2022: $109,760 #### Retained Earnings - 2023: $323,950 - 2022: $258,720 #### Total Liabilities and Stockholders' Equity - 2023: $1,045,000 - 2022: $784,000 ### Explanation The table lists comparative financial data for the years 2023 and 2022. Each primary financial term is recorded alongside the figures for both years, with spaces to compute the percentage of each figure relative to the total assets or total liabilities and stockholders' equity. 1. **Total Assets** includes all that the company owns and can use to generate revenue. 2. **Current Liabilities** are obligations the company is expected to pay off within one year. 3. **Long-term Liabilities** are debts or obligations due in more than one year. 4. **Common Stock** represents the equity stake of shareholders in the company. 5. **Retained Earnings** are the cumulative amount of profits kept in the company after dividends have been paid. The final row sums up current and long-term liabilities, common stock, and retained earnings to match the total assets value for both years, maintaining a balanced financials statement as the accounting equation asserts: **Assets = Liabilities + Stockholders' Equity**.
Transcribed Image Text:### Financial Statement Analysis #### Total Assets - 2023: $1,045,000 - 2022: $784,000 #### Current Liabilities - 2023: $188,100 - 2022: $94,080 #### Long-term Liabilities - 2023: $428,450 - 2022: $321,440 #### Common Stock - 2023: $104,500 - 2022: $109,760 #### Retained Earnings - 2023: $323,950 - 2022: $258,720 #### Total Liabilities and Stockholders' Equity - 2023: $1,045,000 - 2022: $784,000 ### Explanation The table lists comparative financial data for the years 2023 and 2022. Each primary financial term is recorded alongside the figures for both years, with spaces to compute the percentage of each figure relative to the total assets or total liabilities and stockholders' equity. 1. **Total Assets** includes all that the company owns and can use to generate revenue. 2. **Current Liabilities** are obligations the company is expected to pay off within one year. 3. **Long-term Liabilities** are debts or obligations due in more than one year. 4. **Common Stock** represents the equity stake of shareholders in the company. 5. **Retained Earnings** are the cumulative amount of profits kept in the company after dividends have been paid. The final row sums up current and long-term liabilities, common stock, and retained earnings to match the total assets value for both years, maintaining a balanced financials statement as the accounting equation asserts: **Assets = Liabilities + Stockholders' Equity**.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Vertical statement analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS