A condensed balance sheet for Simultech Corporation and a partially completed ve
ID: 2456405 • Letter: A
Question
A condensed balance sheet for Simultech Corporation and a partially completed vertical analysis are presented below.
Complete the vertical analysis by computing each missing line item as a percentage of total assets. (Round your answers to the nearest whole percent.)
%
What percentage of Simultech’s total assets relate to inventories? (Round your answers to the nearest whole percent.)
What percentage of Simultech’s total assets relate to property and equipment? (Round your answers to the nearest whole percent.)
What percentage of Simultech’s assets is financed by total stockholder's equity? By total liabilities? (Round your answers to the nearest whole percent.)
A condensed balance sheet for Simultech Corporation and a partially completed vertical analysis are presented below.
Explanation / Answer
Completed the missing figures.
Percentage of total assets relative to inventories = Total Assets *100 / Inventories
= (1,570/211)*100
= 744%
Percentage of total assets relate to property and eeuipment.
= Total Assets / Property and Equipment
= (1,570/28)*100
= 5607%.
Percentage of Assets financed by Equity.
=Stock holders Equity / Total Assets
= 616 / 1570 *100
= 39%.
Percentage of assets financed by debt.
=100-39% = 61%.
SIMULTECH CORPORATION Balance Sheet (summarized) 31-Jan (in millions of U.S. dollars) Cash and Short-Term Investments $458 29.17 % Current Liabilities $434 27.64 % Accounts Receivable 299 19.04 % Notes Payable (long-term) 520 33.12 % Inventories 211 13.44 % Total Liabilities 954 60.76 % Other Current Assets 124 7.90 % Common Stock 119 7.58 % Property and Equipment 28 1.78 % Retained Earnings 497 31.66 % Other Assets 450 28.66 % Total Stockholders’ Equity 616 39.24 % Total Assets $1,570 100 % Total Liabilities & Stockholders’ Equity $1,570 100 %Related Questions
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