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.) SIMULTECH CORPORATION Balance Sheet (summarized) January 31 (in millions of U.S. dollars) Cash $433 29 % Current Liabilities $409 27 % Accounts Receivable 294 19 Long-term Liabilities 495 33 Inventory 206 14 Total Liabilities 904 Other Current Assets 109 Common Stock 118 Property and Equipment 27 2 Retained Earnings 492 32 Other Assets 445 29 Total Stockholders’ Equity 610 Total Assets $1,514 100 % Total Liabilities & Stockholders’ Equity $1,514 100 % 2A. What percentage of Simultech’s total assets relate to inventory? (Round your answer to the nearest whole percent.) 2B. What percentage of Simultech’s total assets relate to property and equipment? (Round your answer to the nearest whole percent.) 2C. Which of these two asset groups is more significant to Simultech’s business? (Pick one) -Property and equipment is a much more significant asset than inventory -Inventory is a much more significant asset that property and equipment 3. What percentage of Simultech’s assets is financed by total stockholder's equity? By total liabilities? (Round your answers to the nearest whole percent.) Percentage Total Stockholder's Equity % Total Liabilities %
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.) SIMULTECH CORPORATION Balance Sheet (summarized) January 31 (in millions of U.S. dollars) Cash $433 29 % Current Liabilities $409 27 % Accounts Receivable 294 19 Long-term Liabilities 495 33 Inventory 206 14 Total Liabilities 904 Other Current Assets 109 Common Stock 118 Property and Equipment 27 2 Retained Earnings 492 32 Other Assets 445 29 Total Stockholders’ Equity 610 Total Assets $1,514 100 % Total Liabilities & Stockholders’ Equity $1,514 100 % 2A. What percentage of Simultech’s total assets relate to inventory? (Round your answer to the nearest whole percent.) 2B. What percentage of Simultech’s total assets relate to property and equipment? (Round your answer to the nearest whole percent.) 2C. Which of these two asset groups is more significant to Simultech’s business? (Pick one) -Property and equipment is a much more significant asset than inventory -Inventory is a much more significant asset that property and equipment 3. What percentage of Simultech’s assets is financed by total stockholder's equity? By total liabilities? (Round your answers to the nearest whole percent.) Percentage Total Stockholder's Equity % Total Liabilities %
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter17: Financial Statement Analysis
Section: Chapter Questions
Problem 4PA: Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall...
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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.)
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2A. What percentage of Simultech’s total assets relate to inventory? (Round your answer to the nearest whole percent.)
2B. What percentage of Simultech’s total assets relate to property and equipment? (Round your answer to the nearest whole percent.)
2C. Which of these two asset groups is more significant to Simultech’s business? (Pick one)
-Property and equipment is a much more significant asset than inventory
-Inventory is a much more significant asset that property and equipment
3.
What percentage of Simultech’s assets is financed by total stockholder's equity? By total liabilities? (Round your answers to the nearest whole percent.)
|
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