1.

Vertical Analysis of Balance Sheet

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

	Current Year		Previous Year
Current assets	$250,850		$155,760
Property, plant, and equipment	519,000		454,300
Intangible assets	95,150		38,940
Current liabilities	155,700		90,860
Long-term liabilities	346,000		246,620
Common stock	86,500		90,860
Retained earnings	276,800		220,660

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.

Kwan Company
Comparative Balance Sheet
For the Years Ended December 31
	Current year Amount	Current year Percent	Previous year Amount	Previous year Percent
Current assets	$250,850	%	$155,760	%
Property, plant, and equipment	519,000	%	454,300	%
Intangible assets	95,150	%	38,940	%
Total assets	$865,000	%	$649,000	%
Current liabilities	$155,700	%	$90,860	%
Long-term liabilities	346,000	%	246,620	%
Common stock	86,500	%	90,860	%
Retained earnings	276,800	%	220,660	%
Total liabilities and stockholders' equity	$865,000	%	$649,000	%

2.

Earnings per Share, Price-Earnings Ratio, Dividend Yield

The following information was taken from the financial statements of Zeil Inc. for December 31 of the current fiscal year:

Common stock, $15 par value (no change during the year)	$2,550,000
Preferred $10 stock, $100 par (no change during the year)	2,000,000

The net income was $506,000 and the declared dividends on the common stock were $42,500 for the current year. The market price of the common stock is $15.30 per share.

For the common stock, determine (a) the earnings per share, (b) the price-earnings ratio, (c) the dividends per share, and (d) the dividend yield. If required, round your answers to two decimal places.

a. Earnings per Share	$
b. Price-Earnings Ratio
c. Dividends per Share	$
d. Dividend Yield