ONE COMPLETE QUESTION

b. Perform vertical analysis of the income statement and balance sheet data for 2017 and 2018. Use sales revenue as the base figure for the income statement. Use total assets as the base figure for the balance sheet. Rosson Company Balance sheet Years ended 2017 and 2018 Assets Current Assets: Cash $ 7,500 $ 12,500 1,000 1,500 Marketable Securities Accounts Receivable Inventories 50,000 47,500 150,000 145,000 2,500 5,000 Prepaid Expenses. 213,500 209,000 Total Current Assets Plant and Equipment (net). 147,000 157,000 30,500 0 Intangibles $391,000 $366,000 Total Assets Liabilities: Current Liabilities: $ 58,000 $ 79,500 25,000 22,500 Accounts Payable Other Accrued Liabilities... Total Current Liabilities. Bonds Payable. Total Liabilities... 83,000 102,000 90,000 100,000 173,000 202,000 130,000 130,000 of Par 20,000 20,000 68,000 14,000 Stockholders' Equity Common Stock (SS par). Paid In Capital in Excess of Par....... Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders Equity... Common stock market price at year-end 218,000 164,000 $391,000 $366,000 $14.00 $8.55 **Dividend payments amounted to $11,000 in 2018 and $5,000 in 2017. Rosson Company Vertical Analysis of Balance Sheets 2018 Amount % of Total 3 2017 4 Amount % of Total 7 oulou $ $ $ $ $ $ $ $ $ 7,500 1,000 50,000 150,000 5,000 213,500 147,000 30,500 391,000 $ $ $ $ $ $ $ $ $ 12,500 1,500 47,500 145,000 2,500 209,000 157,000 366,000 5 Assets 6 Cash Marketable Securities 8 Accounts Receivable 9 Inventories mo Prepaid Expenses 11 Total Current Assets 2 Plant and Equipment (net) 3 Intangibles 4 Total Assets 5 Liabilities 6 Accounts Payable Other Accrued Liabilities B Total Current Liabilities Bonds Payable Total Liabilities Stockholders' Equity Common Stock ($5 par) Paid-in Cap. in Excess of Par Retained Earnings Total Stockholders' Equity Total Liabilities and Stk. Equity $ $ $ $ $ 58,000 25,000 83,000 90,000 173,000 $ $ $ $ $ 79,500 22,500 102,000 100,000 202,000 $ $ $ $ 130,000 20,000 68,000 218,000 391,000 $ $ $ $ $ 130,000 20,000 14,000 164,000 366,000