
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Prepare a vertical analysis of both the balance sheets and income statements for Year 4 and Year 3.
Complete this question by entering your answers in the tabs below.
Analysis Bal Analysis Inc
Sheet
Stmt
Prepare a vertical analysis of the balance sheets for Year 4 and Year 3. (Percentages may not add exactly due to rounding. Round your
answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).)
ALLENDALE COMPANY
Vertical Analysis of Balance Sheets
Year 4
Year 3
Amount
% Total
Amount
% Total
Assets
Current assets
Cash
$ 40,000
% $ 36,000
%
Marketable securities
20,000
6,000
Accounts receivable (net)
54,000
46,000
Inventories
135,000
143,000
Prepaid items
25,000
10,000
Total current assets
274,000
241,000
Investments
27,000
20,000
Plant (net)
270,000
255,000
Land
29,000
24,000
Total long-term assets
326,000
299,000
Total assets
$ 600,000
100.00
$ 540,000
100.00
Liabilities and stockholders' equity
Liabilities
Current liabilities
Notes payable
$ 17,000
$
6,000
Accounts payable
113,800
100,000
Salaries payable
21,000
15,000
Total current liabilities
151,800
121.000
Noncurrent liabilities
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)
Common stock (no par; 50,000 shares authorized; 10,000
shares issued)
80,000
80,000
80,000
80,000
Retained earnings
156,200
132,000
Total stockholders' equity
316,200
292,000
Total liabilities & stockholders' equity
$ 600,000
100.00 % $ 540,000
100.00 %
< Analysis Bal Sheet
Analysis Inc Stmt >
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