Question

question#3

Instructions Balance Sheet Instructions Current Year $1,637,500.00 2 Current assets 3 Property, plant, and equipment Intangible assets 3,864,500.00 1,048,000.00 1,179,000.00 Previous Year $1,210,000.00 4,235,000.00 605,000.00 847,000.00 1.996,500.00 665,500.00 2,541,000.00 5 Current liabilities 1,768,500.00 6 long-term liabilities 7 Common stock 655,000.00 2,947,500.00 & Retained earnings 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.

Answer 1

	Current Year	Current Year	Previous Year	Previous Year
	Amount	Percent	Amount	Percent
Current Assets	$1,637,500.00	25%	$1,210,000.00	20%
Property, Plant and Equipment	$3,864,500.00	59%	$4,235,000.00	70%
Intangible Assets	$1,048,000.00	16%	$605,000.00	10%
Total Assets	$6,550,000.00	100%	$6,050,000.00	100%
Current Liabilities	$1,179,000.00	18%	$847,000.00	14%
Long-term Liabilities	$1,768,500.00	27%	$1,996,500.00	33%
Common Stock	$655,000.00	10%	$665,500.00	11%
Retained Earnings	$2,947,500.00	45%	$2,541,000.00	42%
Total Liabilities and Stockholders Equity	$6,550,000.00	100%	$6,050,000.00	100%

Calculations

Current Year

Current Assets as a percentage of Total Assets

=1,637,500/6,550,000 × 100 =25%

Property, Plant and Equipment as a percentage of Total Assets

= 3,864,500/6,550,000 ×100 = 59%

Intangible Assets as a percentage of Total Assets

=1,048,000/6,550,000 =16%

Current Liabilities as a percentage of Total Liabilities and Stockholders Equity

= 1,179,000/6,550,000 ×100 = 18%

Long-term Liabilities as a percentage of Total Liabilities and Stockholders Equity

= 1,768,500/6,550,000 ×100 =27%

Common Stock as a percentage of Total Liabilities and Stockholders Equity

= 655,000/6,550,000 ×100 =10%

Retained Earnings as a percentage of Total Liabilities and Stockholders Equity

= 2,947,500/6,550,000 × 100 =45%

Previous Year

Current Assets as a percentage of Total Assets

= 1,210,000/6,050,000 ×100 =

Property, Plant and Equipment as a percentage of Total Assets

= 4,235,000/6,050,000 ×100 = 70%

Intangible Assets as a percentage of Total Assets

= 605,000/6,050,000 × 100 = 10%

Current Liabilities as a percentage of Total Liabilities and Stockholders Equity

= 847,000/6,050,000 ×100 = 14%

Long-term Liabilities as a percentage of Total Liabilities and Stockholders Equity

= 1,996,500/6,050,000 × 100 = 33%

Common Stock as a percentage of Total Liabilities and Stockholders Equity

= 665,500/6,050,000 × 100 = 11%

Retained Earnings as a percentage of Total Liabilities and Stockholders Equity

= 2,541,000/6,050,000 × 100 =42%