Question

Required information Exercise 12-4B Prepare vertical and horizontal analyses (LO12-1, 12-2) (The following information applies to the questions displayed below.] The balance sheets for Company A for Year 2 and Year 1 are presented below. Exercise 12-4B Part 1 Required: 1. Prepare a vertical analysis of the balance sheet data for Year 2 and Year 1. Express each amount as a percentage of total d should be indicated by a minus sign. Round your answers to 1 decimal place.) COMPANY A Balance Sheet December 31 Year 2 Amount Year 1 % Amount 1 Assets Cash Accounts receivable Inventory Buildings Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Contingent liability Common stock Retained earnings Total liabilities and stockholders' equity $ 1,692,000 1 1,164,000 2,424,000 8,280,000 (1,560,000)| $ 12,000,000 $ 500,000 800,000 1,200,000 8,280,000 (780,000) $ 10,000,000 $ 1,000,000 $ 1,128,000 1,176,000 5,520,000 4,176,000 $ 12,000,000 5,520,000 3.480,000 10,000,000 $

Answer 1

COMPANY A
Balance Sheet
December 31
	Year 2		Year 1
	Amount	%	Amount	%
Assets
Cash	$          1,692,000	14.1%	$        500,000	5.0%
Accounts receivables	$          1,164,000	9.7%	$        800,000	8.0%
Inventory	$          2,424,000	20.2%	$    1,200,000	12.0%
Buildings	$          8,280,000	69.0%	$    8,280,000	82.8%
Less: Accumulated depreciation	$        (1,560,000)	-13.0%	$     (780,000)	-7.8%
Total assets	$        12,000,000	100.0%	$ 10,000,000	100.0%
Liabilities and stockholders' equity
Accounts payable	$          1,128,000	9.4%	$    1,000,000	10.0%
Contingent liabilty	$          1,176,000	9.8%		0.0%
Common stock	$          5,520,000	46.0%	$    5,520,000	55.2%
Retained earnings	$          4,176,000	34.8%	$    3,480,000	34.8%
Total liabilities and stockholders' equity	$        12,000,000	100.0%	$ 10,000,000	100.0%