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 $2,352,000 $1,900,000 Property, plant, and equipment 4,536,000 4,712,000 Intangible assets 1,512,000 988,000 Current liabilities 1,848,000 1,444,000 Long-term liabilities 2,520,000 2,888,000 Common stock 1,260,000 836,000 Retained earnings 2,772,000, 2,432,000 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. Round percentages to one decimal place.
Vertical Analysis of
Balance sheet data for Kwan Company on December 31, the end of two recent fiscal years, follow:
Current Year Previous Year
Current assets $2,352,000 $1,900,000
Property, plant, and equipment 4,536,000 4,712,000
Intangible assets 1,512,000 988,000
Current liabilities 1,848,000 1,444,000
Long-term liabilities 2,520,000 2,888,000
Common stock 1,260,000 836,000
Retained earnings 2,772,000, 2,432,000
Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets and each liability and
Comparative balance sheet: The name itself says that comparison of financial position of an entity over the different period of time. This statement shows the trend between the period for which comparison is being made. The comparison can be made in terms of percentage also for better understanding of trend and easy for analysis.
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