LO 13-1 excel Check Figure Year 4 Retained earnings: 26.03% Problem 13-18A 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. Assets ALLENDALE COMPANY Balance Sheets As of December 31 Current assets Cash Marketable securities Accounts receivable (net) Inventories Prepaid items Total current assets Investments Plant (net) Year 4 Year 3 $ 40,000 $36,000 20,000 6,000 54,000 46,000 135,000 143,000 25,000 10,000 274,000 241,000 27,000 20,000 270,000 255,000 29,000 24,000 Land Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Notes payable Accounts payable Salaries payable Total current liabilities Noncurrent liabilities $600,000 $540,000 $ 17,000 $6,000 113,800 100,000 21,000 15,000 151,800 121,000 Bonds payable 100,000 100,000 Other 32,000 27,000 Total noncurrent liabilities 132,000 127,000 Total liabilities 283,800 248,000 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 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 156,200 132,000 316,200 292,000 $600,000 $540,000 ALLENDALE COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 Revenues Sales (net) Other revenues Year 4 Year 3 $230,000 $210,000 8,000 5,000 Total revenues 238,000 215,000 Expenses Cost of goods sold 120,000 103,000 Selling, general, and administrative 55,000 50,000 Interest expense 8,000 7,200 Income tax expense Total expenses Net earnings (net income) 23,000 22,000 206,000 182,200 32,000 32,800 Retained earnings, January 1 132,000 107,000 Less: Preferred stock dividends 3,200 3,200 Common stock dividends 4,600 4,600 Retained earnings, December 31 $156,200 $132,000