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 $315,890 $183,360 Property, plant, and equipment 580,830 519,520 Intangible assets 122,280 61,120 Current liabilities 244,560 152,800 Long-term liabilities 387,220 313,240 Common stock 101,900 91,680 Retained earnings 285,320 206,280 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 $315,890 fill in the blank 1% $183,360 fill in the blank 2% Property, plant, and equipment 580,830 fill in the blank 3% 519,520 fill in the blank 4% Intangible assets 122,280 fill in the blank 5% 61,120 fill in the blank 6% Total assets $1,019,000 fill in the blank 7% $764,000 fill in the blank 8% Current liabilities $244,560 fill in the blank 9% $152,800 fill in the blank 10% Long-term liabilities 387,220 fill in the blank 11% 313,240 fill in the blank 12% Common stock 101,900 fill in the blank 13% 91,680 fill in the blank 14% Retained earnings 285,320 fill in the blank 15% 206,280 fill in the blank 16% Total liabilities and stockholders' equity $1,019,000 fill in the blank 17% $764,000 fill in the blank 18%

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	$315,890		$183,360
Property, plant, and equipment	580,830		519,520
Intangible assets	122,280		61,120
Current liabilities	244,560		152,800
Long-term liabilities	387,220		313,240
Common stock	101,900		91,680
Retained earnings	285,320		206,280

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	$315,890	fill in the blank 1%	$183,360	fill in the blank 2%
Property, plant, and equipment	580,830	fill in the blank 3%	519,520	fill in the blank 4%
Intangible assets	122,280	fill in the blank 5%	61,120	fill in the blank 6%
Total assets	$1,019,000	fill in the blank 7%	$764,000	fill in the blank 8%
Current liabilities	$244,560	fill in the blank 9%	$152,800	fill in the blank 10%
Long-term liabilities	387,220	fill in the blank 11%	313,240	fill in the blank 12%
Common stock	101,900	fill in the blank 13%	91,680	fill in the blank 14%
Retained earnings	285,320	fill in the blank 15%	206,280	fill in the blank 16%
Total liabilities and stockholders' equity	$1,019,000	fill in the blank 17%	$764,000	fill in the blank 18%

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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