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 $289,080 $177,390 Property, plant, and equipment 473,040 413,910 Intangible assets 113,880 65,700 Current liabilities 210,240 111,690 Long-term liabilities 297,840 262,800 Common stock 105,120 98,550 Retained earnings 262,800 183,960 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 CompanyComparative Balance SheetFor the Years Ended December 31 Current year Amount Current year Percent Previous year Amount Previous year Percent Current assets $289,080 fill in the blank 1% $177,390 fill in the blank 2% Property, plant, and equipment 473,040 fill in the blank 3% 413,910 fill in the blank 4% Intangible assets 113,880 fill in the blank 5% 65,700 fill in the blank 6% Total assets $876,000 fill in the blank 7% $657,000 fill in the blank 8% Current liabilities $210,240 fill in the blank 9% $111,690 fill in the blank 10% Long-term liabilities 297,840 fill in the blank 11% 262,800 fill in the blank 12% Common stock 105,120 fill in the blank 13% 98,550 fill in the blank 14% Retained earnings 262,800 fill in the blank 15% 183,960 fill in the blank 16% Total liabilities and stockholders' equity $876,000 fill in the blank 17% $657,000 fill in the blank 18% fill in blank in percentage

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	$289,080		$177,390
Property, plant, and equipment	473,040		413,910
Intangible assets	113,880		65,700
Current liabilities	210,240		111,690
Long-term liabilities	297,840		262,800
Common stock	105,120		98,550
Retained earnings	262,800		183,960

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 CompanyComparative Balance SheetFor the Years Ended December 31

	Current year Amount	Current year Percent	Previous year Amount	Previous year Percent
Current assets	$289,080	fill in the blank 1%	$177,390	fill in the blank 2%
Property, plant, and equipment	473,040	fill in the blank 3%	413,910	fill in the blank 4%
Intangible assets	113,880	fill in the blank 5%	65,700	fill in the blank 6%
Total assets	$876,000	fill in the blank 7%	$657,000	fill in the blank 8%
Current liabilities	$210,240	fill in the blank 9%	$111,690	fill in the blank 10%
Long-term liabilities	297,840	fill in the blank 11%	262,800	fill in the blank 12%
Common stock	105,120	fill in the blank 13%	98,550	fill in the blank 14%
Retained earnings	262,800	fill in the blank 15%	183,960	fill in the blank 16%
Total liabilities and stockholders' equity	$876,000	fill in the blank 17%	$657,000	fill in the blank 18%

fill in blank in percentage

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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