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Fairway Golf Company\'s balance sheet at December 31, 2016 is as follows (Click

ID: 2599574 • Letter: F

Question

Fairway Golf Company's balance sheet at December 31, 2016 is as follows (Click the icon to view the balance sheet ) Requirement 1. Fairway Golt Company has requested that you perform a vertical analysis of its balance shet to determine the component per 2 percent, XXX% ) December 31,2016 Percentage of Amounttotal assets Assets 14.301% Total current assets Property, plant, and equipment, net Other assets 217.7701 7140% 43,615 305,0001 100.001% Total assets Liabilities 49,715[ 114.985 1630]% Long-term debt Total liabilities 164,700 Stockholders' Equity [ 4600]% 140,300 Total stockholders' equity Total liabilities and stockholders' equity s 305,000 100.00 = Enter any number in the edit fields and then continue to the next question

Explanation / Answer

Vertical analysis

amount

% of total assets/ total of liabilities and shareholders equity = individual item/total of assets/total of liabilities and shareholders equity

total current assets

43615

14.30%

property and plant

217770

71.40%

other assets

43615

14.30%

total assets

305000

100.00%

liabilities

total current liabilities

49715

16.30%

long term debt

114985

37.70%

total liabilities

164700

54.00%

stockholders equity

total stock holders equity

140300

46.00%

total of liabilities and stockholders equity

305000

100.00%

Vertical analysis

amount

% of total assets/ total of liabilities and shareholders equity = individual item/total of assets/total of liabilities and shareholders equity

total current assets

43615

14.30%

property and plant

217770

71.40%

other assets

43615

14.30%

total assets

305000

100.00%

liabilities

total current liabilities

49715

16.30%

long term debt

114985

37.70%

total liabilities

164700

54.00%

stockholders equity

total stock holders equity

140300

46.00%

total of liabilities and stockholders equity

305000

100.00%