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

question 9

Multiple Choice

Please refer to the vertical analysis of a section of a balance sheet,shown below:
$$\begin{array} { | l | r | r | r | r | } \hline { \text { (Dollar amounts in millions) } } & { \mathbf { 2 0 1 7 } } & & { \mathbf { 2 0 1 6 } } & \\\hline & \text { Amount } & \text { \% of total } & \text { Amount } & \% \text { of total } \\\hline \text {Assest}\\\hline \text { Current assets: } & & & & \\\hline \text { Cash } &\$ 10000 & 3.7 \% & \$ 7200 & 2.9 \% \\\hline \text { Accounts receivable, net } &15,600&5.7\%&16800&6.7\% \\\hline \text { Inventory } & 38000 & 13.9\% &31000 & 12.4 \% \\\hline \text { Total current assets } & 63600 & 23.2 \% & 55000 & 22.0 \% \\\hline \text { Property, plant and equipment, net } & 195000 & 71.3 \% & 168000 & 67.2 \% \\\hline \text { Other non-current assets } & 15000 & 5.5 \% & 27100 & 10.8 \% \\\hline \text { Total assets } & \$ 273600 & 100.0 \% & \$ 250100 & 100.0 \% \\\hline\end{array}$$
Which of the following statements accurately describes the data shown for total current assets?

• A) In 2017, current assets grew by 23.2% compared to 2016.
• B) In 2017, current assets as a percentage of total assets declined over the previous year.
• C) Current assets grew as a percentage of total assets over the two year period.
• D) Current assets are equal to 23.2% of net sales in 2017.

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Definitions:

Ovule

In seed plants, a structure that contains the female gametophyte and has the potential to develop into a seed.

Seed

The reproductive unit of a flowering plant, capable of developing into another such plant.

Botanically

Relating to the scientific study of plants, including their physiology, structure, genetics, ecology, distribution, and classification.

Pollen Tubes

Structures grown from pollen grains to deliver sperm cells to an ovule in seed plants, facilitating fertilization.