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Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372 Exercise 2
Vertical Analysis of a Balance Sheet
Electronic Arts is a video game company that competes with Activision. A condensed balance sheet for Electronic Arts and a partially completed vertical analysis are presented below.
Required:
1. Complete the vertical analysis by computing each line item ( a )-( e ) as a percentage of total assets. Round to the nearest whole percentage.
TIP: Inventories were 2 percent of total assets, computed as ($100 ÷ $4,646) × 100.
2. What percentages of Electronic Arts' assets relate to intangibles versus property and equipment What business reasons would explain this relative emphasis
Electronic Arts is a video game company that competes with Activision. A condensed balance sheet for Electronic Arts and a partially completed vertical analysis are presented below.
Required:
1. Complete the vertical analysis by computing each line item ( a )-( e ) as a percentage of total assets. Round to the nearest whole percentage.
TIP: Inventories were 2 percent of total assets, computed as ($100 ÷ $4,646) × 100.
2. What percentages of Electronic Arts' assets relate to intangibles versus property and equipment What business reasons would explain this relative emphasis
Explanation
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1.
Prepare vertical analysis of balance...
Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
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