Using the Following Information from an Annual Report,prepare a Vertical

question 157

Essay

Using the following information from an annual report,prepare a vertical analysis of the consolidated balance sheet at June 30,20xx.(Round percentage answers to one decimal place.)

---

Definitions:

Normal Credit Balance

The expected balance on the credit side of an account, indicating an increase in liabilities, revenue, or equity.

Sales Discounts

Reductions in the selling price offered by a seller to encourage prompt payment by the buyer.

Sales Returns

Transactions involving the return of goods by customers, which reduce the total sales revenue.

Discount Period

The time frame within which a buyer can pay less than the full amount due on an invoice due to early payment incentives offered by the seller.