Please Refer to the Vertical Analysis of a Section of a Balance

question 13

Multiple Choice

Please refer to the vertical analysis of a section of a balance sheet,shown below: $\begin{array}{|c|c|c|c|c|}\hline \text { (Dollar amounts in millions) } & 2017 & & 2016 & \\\hline & \text { Amount } & \% \text { of total } & \text { Amount } & \% \text { of total } \\\hline \text { Assets } & & & & \\\hline \text { Current assets: } & & & & \\\hline \text { Cash } & \$ 10000 & 3.7 \% & \$ 7200 & 2.9 \% \\\hline \text { Accounts receivable, net } & 15600 & 5.7 \% & 16800 & 6.7 \% \\\hline \text { Inventory } & 38000 & 13.9 \% & 31000 & 12.4 \% \\\hline \text { Total current assets } & 63600 & 23.2 \% & 55000 & 22.0 \% \\\hline \text { Property, plant and equipment, net } & 195000 & 71.3 \% & 168000 & 67.2 \% \\\hline \text { Other non-current assets } & 15000 & 5.5 \% & 27100 & 10.8 \% \\\hline \text { Total assets } & \$ 273600 & 100.0 \% & \$ 250100 & 100.0 \% \\\hline\end{array}$ Which of the following statements accurately describes the 13.9% shown for Inventory in 2017?

• A)In 2017,inventory grew 13.9% over the previous year.
• B)In 2017,inventory was equal to 13.9% of the cash balance.
• C)Inventory declined as a percentage of total assets over the two year period.
• D)In 2017,inventory is equal to 13.9% of total assets.

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Definitions:

Semantic Memory

A type of long-term memory that involves the storage of general knowledge of the world, concepts, facts, and meanings of words and symbols.

American Civil War

A conflict between Northern and Southern states of the United States from 1861 to 1865 over issues including states' rights and slavery.

Historic Event

A significant occurrence or happening in the past that has shaped or altered the course of history.

Prospective Memory

This facet of memory is about recollecting actions or intentions that one planned to carry out or remember in the future.