[uscchick2008]

I got a question for homework that requested that we perform a vertical analysis of the balance sheet however all I got were the assets , liabilities and equity how am I supposed to find the percentage of its assets and it was not given?? :mad:

[ChaliceHolder]

Assets = Liabilities + Equity
To do an analysis you can find out various ratios, like the Quick ratio, the Current Ratio, the times interest-interest-earned ratio, the Return on Investment ratio, etc.

[morgaine300]

You're saying you "only" got assets, liabilities and equity. That's everything a balance sheet should contain, so you have what you need.

A vertical analysis is comparing everything as a percent of the totals. Remember that one half of your Balance Sheet is the assets. So each asset is presented as a percent of the total assets, by dividing each one by the total assets. Then total assets will be 100%.

The other half of your Balance Sheet is total liabilities and equity. So each number in that portion is a percent of the total liabilities and equity, again by dividing each one.

So you have something that looks like:
Assets:
Cash $10 1.9%
A/R $30 5.5%
Supplies $5 .9%
Land $200 36.7%
Building $300 55%
Totals $545 100%

Liab & Equity:
A/P $25 4.6%
N/P $100 18.3%
Capital $420 77.1%
Totals $545 100%

Yeah, I know the columns don't look so hot, but that gives you an idea.