Brief Exercise 13-5 Using these data from the comparative balance sheet of Bloss
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Brief Exercise 13-5 Using these data from the comparative balance sheet of Blossom Company, perform vertical analysis. (Round percentages to 1 decimal place, e.g. 12.5%.)Brief Exercise 13-5 Using these data from the comparative balance sheet of Blossom Company, perform vertical analysis. (Round percentages to 1 decimal place, e.g. 12.5%.) Dec. 31, 2017 Dec. 31, 2016 Amount Percentage Accounts recelivable $497,000 735,000 $3,101,000 % $435,000 % 555,000 % $2,758,000 Inventony Total assets Click if you would like to Show Work for this question: Open Show Work By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor Question Attempts: O of 5 used SAVE FOR LATER SUBMIT ANSWER
Explanation / Answer
Dec 31, 2017
Dec 31,2016
Amount
Percentage
Amount
Percentage
Account Receivable
$497,000
16.0
%
$435,000
15.8
%
Inventory
$735,000
23.7
%
$555,000
20.1
%
Total Assets
$3,101,000
100
%
$2,758,000
100
%
Explanation:
During vertical analysis on a balance sheet, each line item in the asset section is presented as a percentage of total assets.
For 2017:
Account receivable % = Account Receivable/Total Assets x 100
= $ 497,000/$ 3,101,000 x 100 = 0.16027088 x 100 = 16.0 %
Inventory % = Inventory/Total Assets x 100
= $ 735,000/$ 3,101,000 x 100 = 0.2370203 x 100 = 23.7 %
For 2016:
Account receivable % = Account Receivable/Total Assets x 100
= $ 435,000/$ 2,758,000 x 100 = 0.15772298 x 100 = 15.8 %
Inventory % = Inventory/Total Assets x 100
= $ 555,000/$ 2,758,000 x 100 = 0.20123277 x 100 = 20.1 %
Dec 31, 2017
Dec 31,2016
Amount
Percentage
Amount
Percentage
Account Receivable
$497,000
16.0
%
$435,000
15.8
%
Inventory
$735,000
23.7
%
$555,000
20.1
%
Total Assets
$3,101,000
100
%
$2,758,000
100
%
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