Brief Exercise 13-5 Using these data from the comparative balance sheet of Oriol

Question

Brief Exercise 13-5

Using these data from the comparative balance sheet of Oriole Company, perform vertical analysis. (Round percentages to 1 decimal place, e.g. 12.5%.)

Dec. 31, 2017

Dec. 31, 2016

Amount

Percentage

Amount

Percentage

Accounts receivable

Inventory

Total assets

Dec. 31, 2017

Dec. 31, 2016

Amount

Percentage

Amount

Percentage

Accounts receivable

$ 567,000 Enter a value in percentages rounded to 1 decimal place.

% $ 404,000 Enter a value in percentages rounded to 1 decimal place.

%

Inventory

$ 827,000 Enter a value in percentages rounded to 1 decimal place.

% $ 578,000 Enter a value in percentages rounded to 1 decimal place.

%

Total assets

$3,157,000 Enter a value in percentages rounded to 1 decimal place.

% $2,818,000 Enter a value in percentages rounded to 1 decimal place.

%

Explanation / Answer

To perform Verical Analysis, Base has to be taken into consideration.

Here, base is taken as total Assets for each year.

Accounts Receivable =( Accounts Receivable/ total assets)*100

   Dec 2016 = ($404000/ $2818000)*100= 14.33%

   Dec 2017 = ($567000/ $3157000)*100= 17.96%

Inventory = (Inventory / Total Assets)*100

   Dec 2016 = ($578000/$2818000)*100 = 20.51%

   Dec 2017 = ( $827000/$3157000)*100 =26.19%

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.