If a company's balance sheet reported accounts receivable equal to $38,500,total current assets of $205,000,and total assets of $510,000,then a vertical analysis of the balance sheet would show a percentage figure for accounts receivable equal to:
A)100.0%
B)40.2%
C)18.8%
D)7.5%

Question

Quizplus · Accepted Answer

Vertical analysis involves expressing each item in a financial statement as a percentage of a base amount. For accounts receivable, the base is total assets. The percentage is calculated as ($38,500 / $510,000) * 100 = 7.5%.

If a Company's Balance Sheet Reported Accounts Receivable Equal to $38,500,total