Below Is a Partially Completed Vertical Analysis of a Balance

question 53

Short Answer

Below is a partially completed vertical analysis of a balance sheet.
Rachel completes a vertical analysis of her company’s balance sheet. What percent of total assets is supplies? Round to the nearest tenth.

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Definitions:

Fair Market Value

The price that a willing buyer and a willing seller would agree upon, given both parties have reasonable knowledge of the asset’s particulars.

Purchase Method

An accounting approach used to consolidate the financial statements of a buyer and a target company after an acquisition.

Diseconomies of Scale

The phenomenon where, beyond a certain point, the cost per unit increases as the scale of operations expands.