MGAB01H3 Lecture : Statement Presentation of Capital Assets

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ochretortoise616

3 Nov 2010

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MGAB01H3 Full Course Notes

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Property, plant, and equipment, natural resources, and intangible assets may be listed separately under the heading capital assets. Natural resources are commonly grouped under the property, plant, and equipment. Goodwill should be presented separately in the balance sheet, and other intangible can be grouped as a one line item on the balance sheet. Net sales / average total assets = asset turnover. Net income / average total assets = return on assets (%) Capital assets are long-lived assets acquired for use in the operation of a business. Tangible capital assets include: property, plant, equipment, and natural resources.

Related Questions

On a classified balance sheet, inventory is classified as

a. An intangible asset.

b. Property, plant, and equipment.

c. A current asset.

d. A long-term investment.

taupetrout745

Vertical Analysis of Balance Sheet

Balance sheet data for Hanes Company on December 31, the end ofthe fiscal year, are shown below.

2014

2013

Current assets

$289,000

$172,260

Property, plant, and equipment

Long-term liabilities

Prepare a comparative balance sheet for 2014 and 2013, statingeach asset as a percent of total assets and each liability andstockholders' equity item as a percent of the total liabilities andstockholders' equity. If required, round percentages to one decimalplace.

Hanes Company

Comparative Balance Sheet

December 31, 2014 and 2013

2014 Amount

2014 Percent

2013 Amount

2013 Percent

Current assets

$ 289,000

$ 172,260

Property, plant, and equipment

467,500

433,840

Intangible assets

93,500

31,900

Total assets

$ 850,000

$ 638,000

Current liabilities

$ 153,000

$ 70,180

Long-term liabilities

348,500

287,100

Common stock

76,500

70,180

Retained earnings

272,000

210,540

Total liabilities and stockholders' equity

$ 850,000

$ 638,000

olivemole983

Balance sheet data for Alvarez Company on December 31, the endof two recent fiscal years, follows:

	Current Year	Previous Year
Current assets	$326,120	$205,140
Property, plant, and equipment	578,600	512,850
Intangible assets	147,280	71,010
Current liabilities	231,440	126,240
Long-term liabilities	431,320	355,050
Common stock	94,680	102,570
Retained earnings	294,560	205,140

Prepare a comparative balance sheet for both years, stating eachasset as a percent of total assets and each liability andstockholders' equity item as a percent of the total liabilities andstockholders' equity. If required, round percentages to one decimalplace.

Alvaraz Company
Comparative Balance Sheet
Forthe Years Ended December 31
	Current year Amount	Current year Percent	Previous year Amount	Previous year Percent
Current assets	$326,120	%	$205,140	%
Property, plant, and equipment	578,600	%	512,850	%
Intangible assets	147,280	%	71,010	%
Total assets	$1,052,000	%	$789,000	%
Current liabilities	$231,440	%	$126,240	%
Long-term liabilities	431,320	%	355,050	%
Common stock	94,680	%	102,570	%
Retained earnings	294,560	%	205,140	%
Total liabilities and stockholders'equity	$1,052,000	%	$789,000	%

bronzemarten868

MGAB01H3 Lecture : Statement Presentation of Capital Assets

MGAB01H3 Full Course Notes

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