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:

Capital Contribution

The injection of assets by the owners or shareholders into a business for operational or investment purposes.

Distributes The Assets

The process of allocating a deceased person's property and assets according to their will or the law in cases of intestacy.

Firm's Existence

The legal status of a company as an entity that can exercise legal rights, fulfill obligations, and face liabilities independently from its owners.

Dissolve

The process of legally ending the existence of a corporation, partnership, or other formal business entity.