Empire Moving Company reported the following amounts on its balance sheet as of December 31,2016 and December 31,2017: $$\begin{array} { | l | r | r | }
\hline &{ 2017 } &{ 2016 } \
\hline \text { Cash and Receivables } & \$ 105,000 & \$ 85,000 \
\hline \text { Merchandise Inventory } & 135,000 & 180,000 \
\hline \text { Property, Plant and Equipment, net } & 770,000 & 790,000 \
\hline \text { Total Assets } & \$ 1,010,000 & \$ 1,055,000 \
\hline \text { Total Liabilities } & \$ 435,000 & \$ 445,000 \
\hline
\end{array}$$ For the vertical analysis,what is the percentage of total liabilities for December 31,2016? (Round your answer to two decimal places. )

Question

Empire Moving Company reported the following amounts on its balance sheet as of December 31,2016 and December 31,2017: $$\begin{array} { | l | r | r | } 
\hline &{ 2017 } &{ 2016 } \
\hline \text { Cash and Receivables } & \$ 105,000 & \$ 85,000 \
\hline \text { Merchandise Inventory } & 135,000 & 180,000 \
\hline \text { Property, Plant and Equipment, net } & 770,000 & 790,000 \
\hline \text { Total Assets } & \$ 1,010,000 & \$ 1,055,000 \
\hline \text { Total Liabilities } & \$ 435,000 & \$ 445,000 \
\hline
\end{array}$$ For the vertical analysis,what is the percentage of total liabilities for December 31,2016? (Round your answer to two decimal places. )

Quizplus · Accepted Answer

The percentage of total liabilities for December 31, 2016, is calculated by dividing total liabilities by total assets and then multiplying by 100. So, $(\$445,000 / \$1,055,000) \times 100 = 42.18%$.

Empire Moving Company Reported the Following Amounts on Its Balance