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The balance sheets for Company A for Year 2 and Year 1 are presented below. Required: 1. Prepare a vertical analysis of the balance
The balance sheets for Company A for Year 2 and Year 1 are presented below. Required: 1. Prepare a vertical analysis of the balance sheet data for Year 2 and Year 1. Express each amount as a percentage of total assets. (Amounts to be deducted should be indicated by a minus sign. Round your answers to 1 decimal place.) COMPANY A Balance Sheet Assets Cash Accounts receivable Inventory Buildings Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity December 31 Year 2 Amount % $ 2,310,000 1,305,000 Year 1 Amount % $ 840,000 1,044,000 2,136,000 4,005,000 8,580,000 (1,200,000) 8,580,000 (600,000) $ 12,000,000 $ 15,000,000 $ 1,725,000 Accounts payable Contingent liability Common stock Retained earnings Total liabilities and stockholders' equity 1,230,000 4,920,000 7,125,000 $ 15,000,000 $ 1,380,000 4,920,000 5,700,000 $ 12,000,000
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