Modern Moving Company Reported the Following Amounts on Its Balance

question 70

Multiple Choice

Modern Moving Company reported the following amounts on its balance sheet as of December 31, 2019 and December 31, 2018: $$\begin{array} { | l | r | r | } \hline & { 2019 } & { 2018 } \\\hline \text { Cash and Receivables } & \$ 175,000 & \$ 135,000 \\\hline \text { Merchandise Inventory } & 235,000 & 170,000 \\\hline \text { Property, Plant and Equipment, net } & 780,000 & 790,000 \\\hline \text { Total Assets } & \$ 1,190,000 & \$ 1,095,000 \\\hline \text { Total Liabilities } & \$ 485,000 & \$ 445,000 \\\hline\end{array}$$ For the vertical analysis, what is the percentage of stockholders' equity as of December 31, 2019? (Round your answer to two decimal places.)

• A) 100.00%
• B) 59.36%
• C) 59.24%
• D) There is not enough information provided to make this computation.

---

Definitions:

Depreciable Cost

The cost of a fixed asset minus its salvage value, representing the total amount that can be depreciated over its useful life.

Constant Percentage

A fixed rate applied uniformly across a set of variables or values, often used in finance and mathematics.

Salvage Value

The estimated resale value of an asset at the end of its useful life, often considered for depreciation calculations.

Depreciation

Depreciation is the systematic allocation of the cost of a tangible asset over its useful life to reflect its decrease in value due to wear and tear, age, or obsolescence.