Question

Kapow, Inc. Comparative Balance Sheet December 31, 2017 and 2016 2017 2016 $ 200,000 550,000 50,000 $800,000 $100,000 500,000 50,000 $650,000 Assets Total Current Assets Property, Plant, and Equipment, Net Other Assets Total Assets Liabilities Total Current Liabilities Long-term Liabilities Total Liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Stockholders' Equity $150,000 350,000 500,000 $100,000 250,000 350,000 300,000 $800,000 300,000 $650,000 Perform a vertical analysis of Kapow's balance sheet for each year. (Round to one decimal plac

Answer 1

Vertical Analysis of Kapow's Balance Sheet is shown as follows:-   (Amounts in $)

	2017		2016
Assets	Amounts	%	Amounts	%
Total Current Assets	200,000	25.0%	100,000	15.4%
Property, Plant, and Equipment, net	550,000	68.7%	500,000	76.9%
Other Assets	50,000	6.3%	50,000	7.7%
Total Assets	800,000	100.0%	650,000	100%
Liabilities
Total Current Liabilities	150,000	18.8%	100,000	15.3%
Long-term Liabilities	350,000	43.7%	250,000	38.5%
Total Liabilities	500,000	62.5%	350,000	53.8%
Stockholders' Equity
Total Stockholders' Equity	300,000	37.5%	300,000	46.2%
Total Liabilities and Stockholders' Equity	800,000	100.0%	650,000	100.0%

Working Notes:-

1) Total assets and total liabilities and stockholders' equity are assumed to be equal to 100%. The percentage of each item of balance sheet (i.e. assets and liabilities) are calculated by dividing the respective amount for that item by total assets or total liabilities and stockholders' equity.