Question

17-04

Vertical Analysis of Balance Sheet

Balance sheet data for Alvarez Company on December 31, the end of two recent fiscal years, follows:

	Current Year		Previous Year
Current assets	$249,400		$141,900
Property, plant, and equipment	516,000		464,400
Intangible assets	94,600		38,700
Current liabilities	189,200		116,100
Long-term liabilities	326,800		245,100
Common stock	94,600		83,850
Retained earnings	249,400		199,950

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. If required, round percentages to one decimal place.

Alvaraz Company
Comparative Balance Sheet
For the Years Ended December 31
	Current year Amount	Current year Percent	Previous year Amount	Previous year Percent
Current assets	$249,400	%	$141,900	%
Property, plant, and equipment	516,000	%	464,400	%
Intangible assets	94,600	%	38,700	%
Total assets	$860,000	%	$645,000	%
Current liabilities	$189,200	%	$116,100	%
Long-term liabilities	326,800	%	245,100	%
Common stock	94,600	%	83,850	%
Retained earnings	249,400	%	199,950	%
Total liabilities and stockholders' equity	$860,000	%	$645,000	%

Answer 1

	Current year Percent	Previous year Percent
Current Assets	29%	22%
PPE	60%	72%
Intangible assets	11%	6%
Total assets	100%	100%
Current Liabilities	22%	18%
Long term liabilities	38%	38%
Common stock	11%	13%
Retained earnings	29%	31%
Total Liabilities and stockholders equity	100%	100%