Prepare a Vertical Analysis for the Balance Sheet Data Given

question 122

Essay

Prepare a vertical analysis for the balance sheet data given below. (Round to two decimal places.)
Petals, Inc.
Balance Sheet
December 31,2019 Assets
Current Assets:
$$\begin{array} { l l } \text { Cash and Cash Equivalents } & \$ 10,000 \\\text { Accounts Receivable, Net } & 15,600 \\\text { Merchandise Inventory } & \underline { 38,000 } \\\text { Total Cument Assets } & 63,600 \\\text { Long-term Invetments } & 15,000 \\\text { Property, Plant, and Equipment, Net } & \underline { \$ 195,000} \\\text { Total Assets } & \underline {\$ 273,600}\end{array}$$ Liabilities
Current Liabilities:
$\begin{array}{ll}\text { Accounts Payable } & \$ 8,500 \\\text { Notes Payable } & \underline{1,400} \\\text { Total Current Liabilities } & 9,900 \\\text { Long-term Liabilities } & \underline{54,000} \\\text { Total Liabilities } & 63,900\end{array}$
Stockholders' Equity
$$\begin{array} { l l } \text { Common Stcck } & 161,000 \\\text { Retained Earnings } & \underline { 48,700 } \\\text { Total Stockholders' Equity } & \underline { 209,700 } \\\text { Total Liabilities and Stockholders' Equity } & \underline { \$ 273,600}\end{array}$$

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Definitions:

Marginal Revenue Product

The increased earnings resulting from the utilization of one additional unit of a production resource.

Labor Supply

The total hours that workers wish to work at a given real wage rate, reflecting how individuals divide their time between labor and leisure.

Capital

Financial assets or the monetary value of physical assets such as buildings or machinery used by a business to produce goods or services.

Marginal Product

The additional output produced as a result of adding one more unit of a specific input, keeping all other inputs constant.