Question

Provide a brief summary of what you found in the vertical analysis. For example, comment on what the %s tell you about the company. You don't have to do every item. Simply pick out some of the higher and lower %s that you feel are most important (telling) about the company. Your comments should include the balance sheet and the income statement.

Module?-Assignment2-Written Accounting Case VerticalANalysis-Tyler Fitzpatrick ALLENDALE COMPANY Balance Sheets As of December 31 Year 4 Vertical Year 4 Analysis Year 3 Year 3 vertical Analysis $ 40,000.00 6.67% $ 36,000.00 7% 20,000 3.33% 6,000 Assets Currentassets Cash Marketable securities Accounts receivable (net) Inventories Prepaid items Total current assets Investments 9% 54,000 135,000 25,000 9.00% 22.50% 4.17% 46,000 143,000 10,000 26% 2% 45% 274,000 27,000 45.67% 4.50% 241,000 20,000 47% Plant(net) Land 270,000 29,000 45.00% 4,83% 255,000 24,000 $600,000.00 100.00% $540,000.00 100% Total assets Liabilities and Stockholders Equity 0.00% Liabilities 0.00% Current liabilities 0.00% $ 17,000.00 2.83% $ 6,000.00 113,800 18.97% 100,000 19% Notes payable Accounts payable Salaries payable Total current liabilities 21,000 3.50% 15,000 151,800 121,000 22% 25.30% Add footer Module? - Assignment2-Written Accounting Case VerticalANalysis-Tyler Fitzpatrick ON Noncurrent llabilities Bonds payable Other 100,000 32.000 0.00% 16.67% 5.33% 100,000 27,000 19% 5% 132,000 283,800 22.00% 47 30% 127.000 248,000 24% 46% 0.00% 80,000 13.33% 80,000 15% Total noncurrent labilities Total liabilities Stockholders' equity Preferred stock, (par value $10 4% cumulative, non- participating; 8,000 shares authorized and issued) Common stock (no par;50,000 shares authorized 10,000 shares issued) Retained earnings Total stockholders equity Total liabilities and stockholders' equity 80,000 13.33% 80,000 15% 156,200 26.03% 132,000 24% 316200 52.70% 292,000 54% $ 600,000.00 100.00% $540,000.00 100%

Answer 1

Answer ! i Balance sheet 0 Company has Maintained the working Capital In good form. Current Ratio is decreased from 1.99 to 1.80 this Yeard although is above good ratio 6 quidity ratio is not up to the Mark as Coment liabilities are more than liquid assets 9 long-term l'abilities are same for the both Year's Except a slight change in other's Catagory i.e. Increase in Year 6 There is no change in to Preffered or Common stock in Year 4 they are as it is as emitirtea? in Year 3 1) Income statement! - Sales for the year has been Increased by the Amount & 20000 which is a good sign for the Company Net Income of the company for the tears Year 2018 has been change slightly towards down by $800 ③ Retained earning has been Increased to Amount $ 1562.00 in Comparison to last year $132000