Using the following data from the comparative balance sheet of Goody Company. De
ID: 2529209 • Letter: U
Question
Using the following data from the comparative balance sheet of Goody Company.
December 31, 2017
December 31, 2016
Accounts receivable
$448,920
$467,200
Inventory
771,420
656,000
Total assets
2,580,000
3,200,000
Illustrate vertical analysis. (Round percentages to 1 decimal place, e.g. 12.1%.)
December 31, 2017
December 31, 2016
Goody Company
Balance Sheets
Amount
Percentage
Amount
Percentage
Accounts receivable
$448,920
%
$467,200
%
Inventory
$771,420
%
$656,000
%
Total assets
$2,580,000
%
$3,200,000
%
December 31, 2017
December 31, 2016
Accounts receivable
$448,920
$467,200
Inventory
771,420
656,000
Total assets
2,580,000
3,200,000
Explanation / Answer
Under vertical analysis;each item is represented as a % of total assets/total liabilities and equity for each year.
December 31,2017 Amount % December 31,2016 Amount % AR 448920 17.4% 467200 14.6% Inventory 771420 29.9% 656000 20.5% Total assets 2,580,000 100% 3,200,000 100%Related Questions
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