Complete the Following Vertical Analysis of a Balance Sheet (Round to Nearest Tenth Percent

question 116

Multiple Choice

Complete the following vertical analysis of a balance sheet: $$\begin{array} { | c | c | c | } \hline & \text { Amount } & \text { Percent } \\\hline \text { Current assets } & \$ 15,751 & \mathrm {~A} \\\hline \text { Accounts Receivable } & \$ 10,888 & \mathrm {~B} \\\hline \text { Inventory } & \$ 97,125 & \mathrm { C } \\\hline \text { PPD expenses } & \$ 11,448 & \mathrm { D } \\\hline \text { Total assets } & \$ 135,212 & 100 \% \\\hline\end{array}$$ (Round to nearest tenth percent.)

• A)11.6%, 8.1%, 71.8%, 8.5%
• B)11.5%, 8.0%, 72%, 11.7%
• C)13%, 8.6%, 80%, 12.7%
• D)15%, 10.2%, 66.1%, 12.5%
• E)None of these

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Definitions:

Inventory

The raw materials, work-in-progress products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

Gross Domestic Product (GDP)

A measure of the total economic production of a country, representing the total value of all goods and services produced over a specific time period.

Investment

The process of distributing funds with the aim of earning revenue or gains.

Imports

Goods or services brought into a country from abroad for sale, typically requiring payment to the origin country or entity.