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

question 12

Multiple Choice

Please refer to the vertical analysis of a section of a balance sheet, shown below: $\begin{array}{|l|r|r|r|r|}\hline \text { (Dollar amounts in millions) } & 2014 & & 2013 & \\\hline & \text { Amount } & \text { \% of Total } & \text { Amount } & \text { \% of Total } \\\hline \text { Assets } & & & & \\\hline \text { Current assets: } & & & & \\\hline \text { Cash } & \$ 10,000 & 3.7 \% & \$ 7,200 & 2.9 \% \\\hline \text { Accounts receivable, net } & 15,600 & 5.7 \% & 16,800 & 6.7 \% \\\hline \text { Inventory } & 38,000 & 13.9 \% & 31,000 & 12.4 \% \\\hline \text { Total current assets } & 63,600 & 23.2 \% & 55,000 & 22.0 \% \\\hline \text { Property, plant and equipment, net } & 195,000 & 71.3 \% & 168,000 & 67.2 \% \\\hline \text { Other long-term assets } & 15,000 & 5.5 \% & 27,100 & 10.8 \% \\\hline \text { Total assets } & \$ 273,600 & 100.0 \% & \$ 250,100 & 100.0 \% \\\hline\end{array}$

-Which of the following statements is valid regarding the data shown above?

• A) Cash grew 3.7% over the previous year balance.
• B) In 2014, Inventory represented 13.9% of net sales revenues.
• C) Other long-term assets dropped 5.5% over the 2-year period.
• D) Property, plant and equipment grew as a percentage of total assets over the 2-year period.

Understand different types of e-commerce models and their applications.

Identify and classify e-commerce organizations based on their operational domains.

Recognize legislation related to online activities and its implications for e-commerce.

Describe the evolution and adaptation of businesses from traditional to digital platforms.

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Definitions:

Bank Charging

Fees or penalties charged by banks for their services, including account maintenance, ATM usage, and overdrafts.

Loan

A financial agreement in which one party lends money to another, which the borrower agrees to repay with interest over a specified period.

Cash Flows

Represents the movements of cash into and out from a business, highlighting its operational health and financial stability.

Return

The gain or loss of a security in a particular period, including any dividends or interest, expressed as a percentage of the investment's initial cost.