Prepare a vertical analysis of the balance sheets for 2019 and 2018. (Percentage
ID: 2411210 • Letter: P
Question
Prepare a vertical analysis of the balance sheets for 2019 and 2018. (Percentages may not add exactly due to rounding Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).) FANNING COMPA Vertical Analysis of Balance Sheets 2019 2018 Percentag Amount of Total Percentage Amount of Total Assets Current assets Cash Marketable securities Accounts receivable (net) Inventories Prepaid items 16,400 21,200 54,600 135,200 26,000 253,400 27,100 271,500 29,100 327,700 13,100 6,600 47,700 143,300 10,200 220,900 20,300 255,800 25,900 302,000 Total current assets Investments Plant (net) Land Total long-term assets Total assets 581,100 522,900 Liabilities and stockholders' equity Liabilities Current liabilities Notes payable Accounts payable Salaries payable 16,100 112,900 20,900 149,900 $ 4,700 99,700 13,200 117,600 Total current liabilities Noncurrent liabilities 99,500 30,100 129,600 279,500 99,500 26,400 125,900 243,500 Bonds payable Other Total noncurrent liabilities Total liabilities Stockholders' equity Preferred stock (par value $10, 4% cumulative, nonparticipating: 6,400 shares 64,000 64,000 173,600 301,600 64,000 64,000 151,400 279,400 authorized and issued Common stock (no par, 50,000 shares authorized; 10,000 shares issued) Retained earnings Total stockholders' equity Total liabilities &stockholders;' equity 581,100 522,900Explanation / Answer
balance Sheet 2019 2018 Assets Amount % Amount % Current assets: Cash 16400 2.82% 13100 2.51% Marketable securities 21200 3.65% 6600 1.26% Accounts receovable 54600 9.40% 47700 9.12% Inventories 135200 23.27% 143300 27.40% Prepaid expense 26000 4.47% 10200 1.95% Total current assets 253400 43.61% 220900 42.25% Investment 27100 4.66% 20300 3.88% Plant 271500 46.72% 255800 48.92% Land 29100 5.01% 25900 4.95% Total Long term assets 327700 56.39% 302000 57.75% Total assets 581100 100.00% 522900 100.00% Liabilities and Stockholder's equity Liabilities: Current liabilities: Notes payable 16100 2.77% 4700 0.90% Accounts payable 112900 19.43% 99700 19.07% Salaries payable 20900 3.60% 13200 2.52% Total current liabilities 149900 25.80% 117600 22.49% Non Current liabilities Bonds payable 99500 17.12% 99500 19.03% Othr 30100 5.18% 26400 5.05% Total Non current liabilities 129600 22.30% 125900 24.08% Total liabilities 279500 48.10% 243500 46.57% Stockholder's equity Preferred Stock 64000 11.01% 64000 12.24% Common Stock 64000 11.01% 64000 12.24% Retained earnings 173600 29.87% 151400 28.95% Total Stockholder's equity 301600 51.90% 279400 53.43% Total liabilities and stockholder's equity 581100 100.00% 522900 100.00% Income statement: 2019 2018 Amount % Amount % Revenue Sales 230700 96.37% 211100 97.06% Other revenues 8700 3.63% 6400 2.94% Total revenues 239400 100.00% 217500 100.00% Expenses Cost of goods sold 118000 49.29% 102700 47.22% Selling, general and admin expense 54400 22.72% 49200 22.62% Interest expense 7100 2.97% 6300 2.90% Income tax expense 22200 9.27% 21200 9.75% Total expense 201700 84.25% 179400 82.48% Net income 37700 15.75% 38100 17.52%