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 $289,000 $172,260 Property, plant, and equipment 467,500 427,460 Intangible assets 93,500 38,280 Current liabilities 204,000 114,840 Long-term liabilities 306,000 229,680 Common stock 76,500 82,940 Retained earnings 263,500 210,540 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. Alvaraz Company Comparative Balance Sheet For the Years Ended December 31 Current year Amount Current year Percent Previous year Amount Previous year Percent Current assets $289,000 fill in the blank 1% $172,260 fill in the blank 2% Property, plant, and equipment 467,500 fill in the blank 3% 427,460 fill in the blank 4% Intangible assets 93,500 fill in the blank 5% 38,280 fill in the blank 6% Total assets $850,000 fill in the blank 7% $638,000 fill in the blank 8% Current liabilities $204,000 fill in the blank 9% $114,840 fill in the blank 10% Long-term liabilities 306,000 fill in the blank 11% 229,680 fill in the blank 12% Common stock 76,500 fill in the blank 13% 82,940 fill in the blank 14% Retained earnings 263,500 fill in the blank 15% 210,540 fill in the blank 16% Total liabilities and stockholders' equity $850,000 fill in the blank 17% $638,000 fill in the blank 18%

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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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	$289,000		$172,260
Property, plant, and equipment	467,500		427,460
Intangible assets	93,500		38,280
Current liabilities	204,000		114,840
Long-term liabilities	306,000		229,680
Common stock	76,500		82,940
Retained earnings	263,500		210,540

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.

Alvaraz Company
Comparative Balance Sheet
For the Years Ended December 31
	Current year Amount	Current year Percent	Previous year Amount	Previous year Percent
Current assets	$289,000	fill in the blank 1%	$172,260	fill in the blank 2%
Property, plant, and equipment	467,500	fill in the blank 3%	427,460	fill in the blank 4%
Intangible assets	93,500	fill in the blank 5%	38,280	fill in the blank 6%
Total assets	$850,000	fill in the blank 7%	$638,000	fill in the blank 8%
Current liabilities	$204,000	fill in the blank 9%	$114,840	fill in the blank 10%
Long-term liabilities	306,000	fill in the blank 11%	229,680	fill in the blank 12%
Common stock	76,500	fill in the blank 13%	82,940	fill in the blank 14%
Retained earnings	263,500	fill in the blank 15%	210,540	fill in the blank 16%
Total liabilities and stockholders' equity	$850,000	fill in the blank 17%	$638,000	fill in the blank 18%

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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