Perform a Vertical Analysis on the Following Information

question 4

Essay

Perform a vertical analysis on the following information:
$\begin{array}{|l|r|r|}\hline&2013&2012\\\hline \text { Cash } & \$ 500,000 & \$ 200,000 \\\hline \text { Accounts receivable } & 900,000 & 800,000 \\\hline \text { Inventory } & 700,000 & 500,000 \\\hline \text { Long-term assets } & 2,200,000 & 2,500,000 \\\hline \text { Total assets } & \$ 4,300,000 & \$ 4,000,000\\\hline\end{array}$

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Definitions:

Income Tax

A tax levied by a government directly on personal, or organizational income.

Double Taxation

The levying of tax by two different authorities on the same income, asset, or financial transaction.

Saving Rate

The percentage of take-home pay that is set aside for savings instead of being used for consumer spending.

Economic Growth

A rise in the economy's inflation-adjusted value of produced goods and services over time.