Question

Balance sheet data for Novak Company on December 31, the end of two recent fiscal years, follows:
Current assets Property, plant, and equipment Intangible assets Current liabilities Long-term liabilities Common stock Retained earnings
Current Year
$1,300,000

3,000,000

700,000

1,000,000

1,500,000

500,000

2,000,000
Previous Year
$ 945,000

3,150,000

405,000

720,000

1,575,000

495,000

1,710,000
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 to one decimal place.

Answer 1

Novak Company
Comparative Balance Sheet
For the Years Ended December 31, 20--
	Current Year	Current Year	Previous Year	Previous Year
	Amount	Percent	Amount	Percent
Assets
Current assets	1300000	26.0%	945000	21.0%
Property, plant, and equipment	3000000	60.0%	3150000	70.0%
Intangible assets	700000	14.0%	405000	9.0%
Total assets	5000000	100.0%	4500000	100.0%
Liabilities
Current liabilities	1000000	20.0%	720000	16.0%
Long-term liabilities	1500000	30.0%	1575000	35.0%
Total liabilities	2500000	50.0%	2295000	51.0%
Stockholders’ Equity
Common stock	500000	10.0%	495000	11.0%
Retained earnings	2000000	40.0%	1710000	38.0%
Total stockholders’ equity	2500000	50.0%	2205000	49.0%
Total liabilities and stockholders’ equity	5000000	100.0%	4500000	100.0%