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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. When required, round percentages to one decimal place. Line Item Description Current assets Alvarez Company Comparative Balance Sheet For the Years Ended December 31 Property, plant, and equipment Intangible assets Total assets Current liabilities Long-term liabilities Common stock Retained earnings Current Year Amount $2,800,000 5,200,000 2,000,000 $10,000,000 $1,800,000 3,600,000 980,000 3,620,000 Total liabilities and stockholders' equity $10,000,000 Current Year Percent 28 ✔% 52 ✓ % 20 % 100 ✔% $9,200,000 18 ✔% $1,380,000 36% 3,680,000 10 X % Previous Year Amount $1,840,000 6,072,000 1,288,000 36 X % 920,000 3,220,000 100 ✔% $9,200,000 Previous Year Percent 20 66 14 15 40 100 % 10 % 35 ✓ % % ✓ % ✓ % ✓ % ✓ % 100 %

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. When required, round percentages to one decimal place. Line Item Description Current assets Alvarez Company Comparative Balance Sheet For the Years Ended December 31 Property, plant, and equipment Intangible assets Total assets Current liabilities Long-term liabilities Common stock Retained earnings Current Year Amount $2,800,000 5,200,000 2,000,000 $10,000,000 $1,800,000 3,600,000 980,000 3,620,000 Total liabilities and stockholders' equity $10,000,000 Current Year Percent 28 ✔% 52 ✓ % 20 % 100 ✔% $9,200,000 18 ✔% $1,380,000 36% 3,680,000 10 X % Previous Year Amount $1,840,000 6,072,000 1,288,000 36 X % 920,000 3,220,000 100 ✔% $9,200,000 Previous Year Percent 20 66 14 15 40 100 % 10 % 35 ✓ % % ✓ % ✓ % ✓ % ✓ % 100 %

Managerial Accounting
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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For the current year on common stock I did 980,000 divide by 10,000,000 equals .098 round to 10 percent.

For the current year on retained earnings 3,620,000 divide by 10,000,000 equals .362 round to 36 percent.

How did I calculate the common stock and retained earnings incorrect?

Thank you

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. When required, round percentages to one decimal place. Line Item Description Current assets Alvarez Company Comparative Balance Sheet For the Years Ended December 31 Property, plant, and equipment Intangible assets Total assets Current liabilities Current Year Amount $2,800,000 5,200,000 2,000,000 $10,000,000 $1,800,000 3,600,000 980,000 3,620,000 Long-term liabilities Common stock Retained earnings Total liabilities and stockholders' equity $10,000,000 Current Year Percent 28 ✔% 52 ✓ % 20 ✓ % 18 ✔% 36 ✔ % 100 ✔% $9,200,000 10 X % X % ✔% 36 Previous Year Amount $1,840,000 100 6,072,000 1,288,000 $1,380,000 3,680,000 920,000 3,220,000 $9,200,000 Previous Year Percent 20 66 14 100 15 40 10 35 100 ✓% % ✓ % ✓ % ✓ % ✓ % ✓ % ✓ % %
Transcribed Image Text: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. When required, round percentages to one decimal place. Line Item Description Current assets Alvarez Company Comparative Balance Sheet For the Years Ended December 31 Property, plant, and equipment Intangible assets Total assets Current liabilities Current Year Amount $2,800,000 5,200,000 2,000,000 $10,000,000 $1,800,000 3,600,000 980,000 3,620,000 Long-term liabilities Common stock Retained earnings Total liabilities and stockholders' equity $10,000,000 Current Year Percent 28 ✔% 52 ✓ % 20 ✓ % 18 ✔% 36 ✔ % 100 ✔% $9,200,000 10 X % X % ✔% 36 Previous Year Amount $1,840,000 100 6,072,000 1,288,000 $1,380,000 3,680,000 920,000 3,220,000 $9,200,000 Previous Year Percent 20 66 14 100 15 40 10 35 100 ✓% % ✓ % ✓ % ✓ % ✓ % ✓ % ✓ % %
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