Vertical Analysis of Balance SheetBalance sheet data for a company for the yvears ended December 31, 20Y2 and 20Y1, are shown below.20Y220Y1Current assets$1,500,000$1,200,000Property, plant, and equipment12,500,00010,800,000Intangible assets2,000,0002,000,000Current liabilities1,000,000850,000Long term liabilities3,000,0002,400,000Common stock2,500,0002,500,000Retained earnings9.500,0008,250,000Prepare a comparative balance sheet for 20Y2 and 20Y1, stating each asset as a percent of total assets and each labity and stockholders equity item as a percant of the total lablities and stackholders uity Round your answeplaceComparative Balance SheetDecember 31, 20Y2 and 20Y120Y2 Amount 20Y2 Percent20Y1 Amount 20Y1 PercetAssetsCurrent assets$1,500,000$1,200,000Property, plant, and equipment12,500,000100002,000,0002,000,000Intangble assets$16,000.000$14.000.00Total aetsLiabilitiesCarent ablities$1,000,0002,400,0003,000,000Long tem abbesStockholders equity2,500,0002,500,000Common stock250,0009,500,000Retaned earmingsSI4.00,000$16,000.000Total labties and stockholders euty

Balance sheet means a statement where all assets , liabilities and equity has been shown. Percentage…

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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The comparative balance sheet of Gus Company at December 31, 2024 and 2023 appears below:Assets:12/31/202412/31/2023Cash$ 53,000 $ 120,000 Accounts receivable (net)37,000 48,000 Inventories108,500 100,000 Equipment573,200 450,000 Accumulated depreciation-equipment (142,000) (176,000) $629,700 $542,000 Liabilities & Stockholders Equity: Accounts payable$ 62,500 $ 43,800 Bonds payable, due June 20240 100,000 Common stock, $10 par335,000 285,000 Paid-in capital in excess of par - Common stock74,000 55,000 Retained earnings 158,200 58,200 $629,700 $542,000 The income statement for the year ended December 31, 2024 appears below:Sales $625,700 Cost of merchandise sold 340,000 Gross profit 285,700 Operating expenses (includes $26,000 depreciation expense) 94,000 Operating Income 191,700 Interest expense 6,000Income before income tax 185,700 Income tax 60,700 Net income $125,000 Also in 2024, fully depreciated equipment costing $60,000 was scrapped at no salvage…
A condensed balance sheet for Simultech Corporation and a partially completed vertical analysis are presented below. Complete the vertical analysis by computing each missing line item as a percentage of total assets. (Round your answers to the nearest whole percent.) SIMULTECH CORPORATION Balance Sheet (summarized) January 31 (in millions of U.S. dollars) Cash $433 29 % Current Liabilities $409 27 % Accounts Receivable 294 19 Long-term Liabilities 495 33 Inventory 206 14 Total Liabilities 904 Other Current Assets 109 Common Stock 118 Property and Equipment 27 2 Retained Earnings 492 32 Other Assets 445 29 Total Stockholders’ Equity 610 Total Assets $1,514 100 % Total Liabilities & Stockholders’ Equity $1,514 100 % 2A. What percentage of Simultech’s total assets relate to inventory? (Round your answer to the nearest whole percent.) 2B. What percentage of Simultech’s total assets relate to property…
Shown below are comparative balance sheets for Novak Company. Novak CompanyComparative Balance SheetsDecember 31 Assets 2022 2021 Cash $ 122,400 $ 39,600 Accounts receivable 158,400 136,800 Inventory 300,600 340,200 Land 144,000 180,000 Equipment 468,000 360,000 Accumulated depreciation—equipment (118,800 ) (57,600 ) Total $1,074,600 $999,000 Liabilities and Stockholders’ Equity Accounts payable $ 70,200 $ 77,400 Bonds payable 270,000 360,000 Common stock ($1 par) 388,800 313,200 Retained earnings 345,600 248,400 Total $1,074,600 $999,000 Additional information: 1. Net income for 2022 was $167,400. 2. Depreciation expense was $61,200. 3. Cash dividends of $70,200 were declared and paid. 4. Bonds payable amounting to $90,000…
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 CurrentyearAmount CurrentyearPercent PreviousyearAmount PreviousyearPercent Current assets $289,000 fill in the blank 1% $172,260 fill in the blank 2% Property, plant, and equipment…
Balance sheet data for Alvarez Company on December 31, the end of two recent fiscal years, follow: Current Year Previous YearCurrent assets $2,500,000 $1,840,000Property, plant, and equipment 5,600,000 6,072,000Intangible assets 1,900,000 1,288,000Current liabilities 2,000,000 1,380,000Long-term liabilities 3,400,000 3,680,000Common stock 920,000 920,000Retained earnings 3,680,000 3,220,000Prepare 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. Round percentages to one…
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 $278,110 $150,990 Property, plant, and equipment 575,400 517,680 Intangible assets 105,490 50,330 Current liabilities 182,210 100,660 Long-term liabilities 412,370 309,170 Common stock 95,900 93,470 Retained earnings 268,520 215,700 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 CompanyComparative Balance Sheet For the Years Ended December 31 Current assets $278,110 fill in the blank 1% $150,990 fill in the blank 2% Property, plant, and equipment 575,400 fill in the blank 3% 517,680 fill in the blank 4% Intangible assets 105,490…
Presented below is the balance sheet of Sheffield Corporation for the current year, 2025. Current assets Investments 643,870 Property, plant, and equipment 1,723,870 Intangible assets 305,000 1. 2. 3. The following information is presented. The current assets section includes cash $153,870, accounts receivable $173,870 less $13,870 for allowance for doubtful accounts, inventories $183,870, and unearned rent revenue $8,870. Inventory is stated on the lower-of-FIFO-cost-or-net realizable value. 4. 5. Sheffield Corporation Balance Sheet December 31, 2025 $ 488,870 6. 7. $3,161,610 Current liabilities Long-term liabilities Stockholders' equity $ 383,870 1,003,870 1,773,870 $3,161,610 The investments section includes the cash surrender value of a life insurance contract $43,870; investments in common stock, short-term $83,870 and long-term $273,870; and bond sinking fund $242,260. The cost and fair value of investments in common stock are the same. Property, plant, and equipment includes…
The most recent financial statements for Crosby, Incorporated, appear below. Sales for 2022 are projected to grow by 20 percent. Interest expense will remain constant, the tax rate and the dividend payout rate also will remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. Sales Costs Other expenses Earnings before interest and taxes Interest expense Taxable income Taxes (24%) CROSBY, INCORPORATED 2021 Income Statement Net income Dividends Addition to retained earnings Current assets Cash Accounts receivable Inventory $31,335 69,745 $ 20,640 43,580 91,960 $747,000 582,000 18,000 FA $147,000 14,000 $ 133,000 31,920 $ 101,080 CROSBY, INCORPORATED Balance Sheet as of December 31, 2021 Assets Seved Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total $ 54,800 14,000 $ 68,800 MA000
mework i 0 ences Mc Graw Hill INCOME STATEMENT OF QUICK BURGER CORPORATION, 2022 (Figures in $ millions) Net sales Costs Depreciation Earnings before interest and taxes (EBIT) Interest expense Pretax income Federal taxes (@ 21%) Net income Assets Current assets Cash and marketable securities Receivables Inventories Other current assets Total current assets Fixed assets Property, plant, and equipment Intangible assets (goodwill) Other long-term assets Total assets a. Free cash flow b. Additional tax c. Free cash flow million million million $ 27,571 17,573 1,406 $ 8,592 521 2022 8,071 1,695 $ 6,376 BALANCE SHEET OF QUICK BURGER CORPORATION, 2022 (Figures in $ millions) 2021 $ 2,340 1,379 126 1,093 $ 4,938 $ 24,681 2,808 2,987 $ 35,414 $ 2,340 1,339 121 620 $ 4,420 Saved $ 22,839 2,657 3,103 Liabilities and Shareholders' Equity Current liabilities Debt due for repayment Long-term debt Other long-term liabilities Total liabilities Total shareholders' equity $ 33,019 Total liabilities and…
Seminole Corporation reported the following items at December 31, 2021, and 2020: (Click the icon to view the comparative financial information.) Read the requirements. Requirement 1. Compute the company's (a) quick (acid-test) ratio and (b) days' sales outstanding for 2021. Evaluate each ratio value as strong or weak. All sales are on account with terms of net 30 days. (a) Enter the formula and calculate the quick (acid-test) ratio for 2021. (Abbreviation used: Cash* = Cash and cash equivalents. Round your final answer to two decimal places.) Cash* + Short-term investments + Net current receivables + Total current liabilities = Quick (acid-test) ratio $ Seminole's quick (acid-test) ratio is considered fairly weak. (b) Select the formula and calculate Seminole's days' sales outstanding for 2021. (Round interim calculations to two decimal places, XX.XX. Round the days' sales outstanding up to the next whole day.) Accounts receivable turnover = + Days' sales outstanding Seminole's days'…
Vertical Analysis of Balance Sheets Consolidated balance sheets for Winged Manufacturing follow. Winged ManufacturingConsolidated Balance Sheets(dollars in thousands) December 31 ASSETS 2023 2023 Current assets: Cash and cash equivalents $1,203,488 $676,413 Short-term investments 54,368 215,890 Accounts receivable, net of allowance for doubtful accountsof $90,992 ($83,776 in 2022) 1,581,347 1,381,946 Inventories 1,088,434 1,506,638 Deferred tax assets 293,048 268,085 Other current assets 255,767 289,383 Total current assets $4,476,452 $4,338,355 Property, plant, and equipment: Land and buildings $484,592 $404,688 Machinery and equipment 572,728 578,272 Office furniture and equipment 158,160 167,905 Leasehold improvements 236,708 261,792 $1,452,188 $1,412,657 Accumulated depreciation and amortization (785,088) (753,111) Net property, plant, and equipment $667,100 $659,546 Other assets…
The comparative balance sheets for Metlock Company appear below: METLOCK COMPANYComparative Balance Sheet Assets Dec. 31, 2022 Dec. 31, 2021 Cash $33,900 $12,500 Accounts receivable 17,500 14,500 Inventory 26,400 19,200 Prepaid insurance 8,500 10,000 Stock investments -0- 15,700 Equipment 88,000 44,000 Accumulated depreciation-equipment (15,500 ) (14,800 ) Total assets $158,800 $101,100 Liabilities and Stockholder's Equity Accounts payable $34,700 $7,900 Bonds payable 37,000 49,400 Common stock 40,400 24,300 Retained earnings 46,700 19,500 Total liabilities and stockholder's equity $158,800 $101,100…

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