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

question 105

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 accurately describes the data shown for total current assets?

• A) Current assets grew as a percentage of total assets over the 2-year period.
• B) Current assets are equal to 23.2% of net sales in 2014.
• C) In 2014, current assets grew by 23.2% compared to 2013.
• D) In 2014, current assets as a percentage of total assets declined over the previous year.

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Definitions:

Binocular Cues

Depth cues, such as retinal disparity, that depend on the use of both eyes and are crucial in perceiving depth.

Pheromones

Chemical substances released by animals and humans that influence the behavior or physiology of others of the same species, often in the context of social communication or mating.

Autokinetic Illusion

A visual illusion in which a stationary point of light appears to move in the dark.

Hue

A color or shade in the spectrum, defined by its wavelength of light.