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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 25
Verbal Analysis of a Balance Sheet
A condensed balance sheet for Simultech Corporation and a partially completed vertical analysis are presented below.
Required:
1. Complete the vertical analysis by computing each line item ( a )-( d ) as a percentage of total assets. Round to the nearest whole percentage.
2. What percentages of Simultech's assets relate to inventories versus property and equipment What does this tell you about the relative significance of these two assets to Simultech's business
3. What percentage of Simultech's assets is financed by total stockholder's equity By total liabilities
A condensed balance sheet for Simultech Corporation and a partially completed vertical analysis are presented below.
Required:
1. Complete the vertical analysis by computing each line item ( a )-( d ) as a percentage of total assets. Round to the nearest whole percentage.
2. What percentages of Simultech's assets relate to inventories versus property and equipment What does this tell you about the relative significance of these two assets to Simultech's business
3. What percentage of Simultech's assets is financed by total stockholder's equity By total liabilities
Explanation
Verified
Verified
Vertical balance sheet is the balance sh...
Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
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