Exercise 12-62 Vertical Analysis of Balance Sheets 1. Prepare common size balanc
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Question
Exercise 12-62
Vertical Analysis of Balance Sheets
1. Prepare common size balance sheets for vertical analysis. Enter your answers in percentage terms, rounded to two decimal places, and do not include the "%" sign with your answer. For example, "100.00" or "28.72". You do not need to include the actual dollar amounts shown above.
Karofsky Computer Inc.
Consolidated Balance Sheets
December 31, 2011
December 31, 2010
Current assets:
%
%
%
%
%
%
%
%
%
%
%
%
Total current assets
%
%
Property, plant, and equipment:
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
Total assets
%
%
Current liabilities:
%
%
%
%
%
%
%
%
%
%
%
%
Total current liabilities
%
%
%
%
%
%
Total liabilities
%
%
Stockholders' equity:
%
%
%
%
%
%
Total stockholders' equity
%
%
Total liabilities and stockholders' equity
%
%
1. Prepare common size balance sheets for vertical analysis. Enter your answers in percentage terms, rounded to two decimal places, and do not include the "%" sign with your answer. For example, "100.00" or "28.72". You do not need to include the actual dollar amounts shown above.
Karofsky Computer Inc.
Consolidated Balance Sheets
December 31, 2011
December 31, 2010
Current assets:
%
%
%
%
%
%
%
%
%
%
%
%
Total current assets
%
%
Property, plant, and equipment:
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
Total assets
%
%
Current liabilities:
%
%
%
%
%
%
%
%
%
%
%
%
Total current liabilities
%
%
%
%
%
%
Total liabilities
%
%
Stockholders' equity:
%
%
%
%
%
%
Total stockholders' equity
%
%
Total liabilities and stockholders' equity
%
%
Explanation / Answer
Formula sheet
A B C D E F G 2 In the Vertical analysis, all the amounts in any given year is calculated as % of key component. 3 For Balance sheet all amounts are calculated as % of total assets. 4 5 Assets 2011 2010 6 Current Asssets 7 Cash $1,203,488 $676,413 8 Investments $54,368 $215,890 9 Accounts Receivable $1,581,347 $1,381,946 10 Inventory $1,088,434 $1,506,638 11 Deferred tax assets $293,048 $268,085 12 Other current assets $255,767 $289,383 13 Total current assets $4,476,452 $4,338,355 14 Property, plant and equipment: 15 Land Buildings $484,592 $404,688 16 Machinery and equipment $572,728 $578,272 17 Office furniture and equipment $158,160 $167,905 18 Leasehold improvements $236,708 $261,792 19 $1,452,188 $1,412,657 20 Accumulated depreciation and amortization ($785,088) ($753,111) 21 Net property plant and Equipment $667,100 $659,546 22 Other assets $159,194 $173,511 23 Total assets $5,302,746 $5,171,412 24 25 Liabilities 2011 2010 26 Current Liabilities 27 Short term borrowings $292,200 $823,182 28 Accounts Payable $881,717 $742,622 29 Accrued compensation and employee benefits $136,895 $144,779 30 Accrued marketing and distribution $178,294 $174,547 31 Accrued restructuring costs $58,238 $307,932 32 Other current liabilities $396,961 $315,023 33 Total current liaiblities $1,944,305 $2,508,085 34 Long term debt $304,472 $7,117 35 Deferred Tax Liabilities $670,668 $629,832 36 Total Liabilities $2,919,445 $3,145,034 37 Shareholders' Equity 38 Common Stock $297,929 $203,613 39 Retained Earnings $2,096,206 $1,842,600 40 Accumulated translation adjustment ($10,834) ($19,835) 41 Total Stockholders Equity $2,383,301 $2,026,378 42 Total Liabilities and owner equity $5,302,746 $5,171,412 43 44 Vertical Analysis of Balance Sheet 45 Assets 2011 2010 46 Current Asssets 47 Cash 22.70% 13.08% 48 Investments 1.03% 4.17% 49 Accounts Receivable 29.82% 26.72% 50 Inventory 20.53% 29.13% 51 Deferred tax assets 5.53% 5.18% 52 Other current assets 4.82% 5.60% 53 Total current assets 84.42% 83.89% 54 Property, plant and equipment: 55 Land Buildings 9.14% 7.83% 56 Machinery and equipment 10.80% 11.18% 57 Office furniture and equipment 2.98% 3.25% 58 Leasehold improvements 4.46% 5.06% 59 27.39% 27.32% 60 Accumulated depreciation and amortization -14.81% -14.56% 61 Net property plant and Equipment 12.58% 12.75% 62 Other assets 3.00% 3.36% 63 Total assets 100.00% 100.00% 64 65 Liabilities 0.04% 0.04% 66 Current Liabilities 0.00% 0.00% 67 Short term borrowings 5.51% 15.92% 68 Accounts Payable 16.63% 14.36% 69 Accrued compensation and employee benefits 2.58% 2.80% 70 Accrued marketing and distribution 3.36% 3.38% 71 Accrued restructuring costs 1.10% 5.95% 72 Other current liabilities 7.49% 6.09% 73 Total current liaiblities 36.67% 48.50% 74 Long term debt 5.74% 0.14% 75 Deferred Tax Liabilities 12.65% 12.18% 76 Total Liabilities 55.06% 60.82% 77 Shareholders' Equity 78 Common Stock 5.62% 3.94% 79 Retained Earnings 39.53% 35.63% 80 Accumulated translation adjustment -0.20% -0.38% 81 Total Stockholders Equity 44.94% 39.18% 82 Total Liabilities and owner equity 100.00% 100.00% 83Related Questions
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