Balance sheet data for Kwan Company on December 31, the end of two recent fiscal years, follow: Current Year Previous Year Current assets $238,670 $141,910 Property, plant, and equipment 477,340 425,730 Intangible assets 106,990 49,360 Current liabilities 148,140 80,210 Long-term liabilities 320,970 234,460 Common stock 90,530 92,550 Retained earnings 263,360 209,780 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. Kwan Company Comparative Balance Sheet For the Years Ended December 31 Current Year Amount Current Year Percent Previous Year Amount Previous Year Percent Current assets $238,670 % $141,910 % Property, plant, and equipment 477,340 % 425,730 % Intangible assets 106,990 % 49,360 % Total assets $823,000 % $617,000 % Current liabilities $148,140 % $80,210 % Long-term liabilities 320,970 % 234,460 % Common stock 90,530 % 92,550 % Retained earnings 263,360 % 209,780 % Total liabilities and stockholders' equity $823,000 % $617,000 %

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4E

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Vertical Analysis of Balance Sheet

Balance sheet data for Kwan Company on December 31, the end of two recent fiscal years, follow:


	Current Year	Previous Year
Current assets	$238,670	$141,910
Property, plant, and equipment	477,340	425,730
Intangible assets	106,990	49,360
Current liabilities	148,140	80,210
Long-term liabilities	320,970	234,460
Common stock	90,530	92,550
Retained earnings	263,360	209,780

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.

Kwan Company

Comparative Balance Sheet

For the Years Ended December 31


	Current Year Amount	Current Year Percent	Previous Year Amount	Previous Year Percent
Current assets	$238,670	%	$141,910	%
Property, plant, and equipment	477,340	%	425,730	%
Intangible assets	106,990	%	49,360	%

Total assets	$823,000	%	$617,000	%
Current liabilities	$148,140	%	$80,210	%
Long-term liabilities	320,970	%	234,460	%
Common stock	90,530	%	92,550	%

Retained earnings	263,360	%	209,780	%
Total liabilities and stockholders' equity	$823,000	%	$617,000	%

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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