17-3 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	$340,000		$210,000
Property, plant, and equipment	520,000		487,500
Intangible assets	140,000		52,500
Current liabilities	200,000		97,500
Long-term liabilities	410,000		322,500
Common stock	110,000		105,000
Retained earnings	280,000		225,000

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	$340,000	%	$210,000	%
Property, plant, and equipment	520,000	%	487,500	%
Intangible assets	140,000	%	52,500	%
Total assets	$1,000,000	%	$750,000	%
Current liabilities	$200,000	%	$97,500	%
Long-term liabilities	410,000	%	322,500	%
Common stock	110,000	%	105,000	%
Retained earnings	280,000	%	225,000	%
Total liabilities and stockholders' equity	$1,000,000	%	$750,000	%