Empire Moving Company Reported the Following Amounts on Its Balance

question 160

Multiple Choice

Empire Moving Company reported the following amounts on its balance sheet as of December 31,2016 and December 31,2017: $$\begin{array} { | l | r | r | } \hline &{ 2017 } &{ 2016 } \\\hline \text { Cash and Receivables } & \$ 105,000 & \$ 85,000 \\\hline \text { Merchandise Inventory } & 135,000 & 180,000 \\\hline \text { Property, Plant and Equipment, net } & 770,000 & 790,000 \\\hline \text { Total Assets } & \$ 1,010,000 & \$ 1,055,000 \\\hline \text { Total Liabilities } & \$ 435,000 & \$ 445,000 \\\hline\end{array}$$ For the vertical analysis,what is the percentage of total liabilities for December 31,2016? (Round your answer to two decimal places. )

• A)100.00%
• B)43.07%
• C)19.10%
• D)42.18%

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Definitions:

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of goods sold, excluding fixed overhead.

Variable Costing

Variable costing is a costing method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.

Fixed Manufacturing Overhead

Consistent costs associated with manufacturing that do not vary with the level of production, such as rent and salaries of managers.

Variable Costing

An accounting method that charges all variable production costs directly to the cost of production, excluding fixed overhead costs from product costing.