Financial statements for Allendale Company follow. ALLENDALE COMPANY Balance Sheets As of December 31 Year 4 Year 3 Assets Current assets Cash $ 40,000 $ 36,000 Marketable securities 20,000 6,000 54,000 46,000 Accounts receivable (net) Inventories 135,000 143,000 Prepaid items 25,000 10.000 Total current assets 274.000 241,000 Investments 27,000 20,000 Plant (net) 270,000 255,000 Land 29,000 24,000 Total assets $600,000 $540,000 Liabilities and Stockholders' Equity Liabilities Current liabilities Notes payable $ 17,000 $ 6,000 113.800 100,000 Accounts payable Salaries payable 21,000 15,000 Total current liabilities 151,800 121,000 Noncurrent liabilities Bonds payable 100,000 100,000 Other 32,000 27,000 Total noncurrent liabilities 132,000 127,000 283,800 248,000 Total liabilities Stockholders' equity Preferred stock (par value $10,4% cumulative, nonparticipating: 8,000 shares authorized and issued) 80,000 80,000 Common stock (no par; 50,000 shares authorized; 10,000 shares issued) 80,000 80,000 156,200 132,000 Retained earnings Total stockholders' equity 316,200 292,000 Total liabilities and stockholders' equity $600,000 $540,000 excel CHECK FIGURE Year 4 Retained earnings: 26.03% Problem 13-18 A Vertical analysis Required Use the financial statements for Allendale Company from Problem 13-17A to perform a vertical analysis of both the balance sheets and income statements for Year 4 and Year 3. Round computations to two decimal points