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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