Perform a Vertical Analysis for the Balance Sheet Entry "Accounts

question 16

Multiple Choice

Perform a vertical analysis for the balance sheet entry "Accounts Payable" given below. (Round to the nearest tenth) $$\begin{array}{l}\text { Liabilities and Owner's Equity }\\\begin{array} { l l } \hline \text { Current Liabilities } & \\\text { Accounts Payable } & \$ 8,100 \\\text { Sal aries Payable } & 14,600 \\\text { Taxes Payable } & 1,500 \\\text { Total Current Liabilities } & 24,200 \\\text { Long-term Liabilities } & \\\text { Debenture Bond } & 6,000 \\\text { Total Liabilities } & 30,200 \\\text { Stockholder's Equity } & \\\text { Retained earnings } & 6,700 \\\text { Total Liabilities and Stockholder's Equity } & \$ 36,900 \\\hline\end{array}\end{array}$$

• A) 22.0%
• B) 17.5%
• C) 16.9%
• D) 14.8%

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Definitions:

Hyaline Cartilage

Hyaline Cartilage is a translucent, elastic tissue that covers the ends of bones in joint areas, reducing friction and absorbing shock during movement.

Synovial Fluid

A viscous fluid found in the cavities of synovial joints, reducing friction between articular cartilages during movement.

Metacarpals

The five long bones in the hand that connect the wrist to the fingers.

Clavicles

Long bones that serve as a strut between the shoulder blade and the sternum or breastbone, also known as collarbones.