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.

Explain the relationship between the velocity of money, inflation, and the use of monetary substitutes.

Appreciate how financial innovations affect the velocity and function of money.

Understand the quantity theory of money and its implications for inflation and nominal GDP growth.

Identify the factors that influence the velocity of money and its impact on the economy.

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Definitions:

Metacarpophalangeal Joints

Joints located between the metacarpal bones of the hand and the proximal phalanges of the fingers, facilitating hand movement.

Condylar

Relates to a rounded knob-like projection on a bone, often involved in joints and articulation.

Diarthrotic Joint

A type of joint that allows for free movement in various directions, characterized by the presence of a synovial cavity, such as the knee or elbow.

Cartilaginous Joint

A joint where bones are joined together by cartilage, allowing for limited movement.