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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 30
Vertical Analysis of a Balance Sheet
A condensed balance sheet for Southwest Airlines and a partially completed vertical analysis are presented below.
Required:
1. Complete the vertical analysis by computing each line item ( a )-( c ) as a percentage of total assets. Round to the nearest whole percentage.
2. What percentages of Southwest's assets relate to inventory of parts and supplies versus property and equipment What does this tell you about the relative significance of these two assets to Southwest's business
3. What percentage of Southwest s assets is financed by total stockholders' equity By total liabilities
A condensed balance sheet for Southwest Airlines and a partially completed vertical analysis are presented below.
Required:
1. Complete the vertical analysis by computing each line item ( a )-( c ) as a percentage of total assets. Round to the nearest whole percentage.
2. What percentages of Southwest's assets relate to inventory of parts and supplies versus property and equipment What does this tell you about the relative significance of these two assets to Southwest's business
3. What percentage of Southwest s assets is financed by total stockholders' equity By total liabilities
Explanation
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Verified
In the vertical balance sheet all assets...
Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
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