Ross Paints reported sales of $350,000, total assets of $150,000, total stockholders' equity of $60,000, current assets of $50,000, current liabilities of $30,000, and cash of $15,000. In a vertical analysis of the balance sheet, cash would be shown as:
A) 25%.
B) 10%.
C) 30%.
D) 20%.

Question

Quizplus · Accepted Answer

In a vertical analysis of the balance sheet, each item is expressed as a percentage of the total assets. Therefore, cash would be shown as:
($15,000 / $150,000) x 100 = 10%

Ross Paints Reported Sales of $350,000, Total Assets of $150,000