Brink Moving Company reported the following amounts on its balance sheet as of December 31,2016 and December 31,2017: $$\begin{array} { | l | r | r | }
\hline & { 2017 } & { 2016 } \
\hline \text { Cash and Receivables } & \$ 75,000 & \$ 145,000 \
\hline \text { Merchandise Inventory } & 215,000 & 170,000 \
\hline \text { Property, Plant and Equipment, net } & 750,000 & 800,000 \
\hline \text { Total Assets } & \$ 1,040,000 & \$ 1,115,000 \
\hline \text { Total Liabilities } & \$ 495,000 & \$ 435,000 \
\hline
\end{array}$$ For the vertical analysis,what is the percentage of current assets as of December 31,2017? (Round your answer to two decimal places. )

Question

Brink Moving Company reported the following amounts on its balance sheet as of December 31,2016 and December 31,2017: $$\begin{array} { | l | r | r | } 
\hline & { 2017 } &  { 2016 } \
\hline \text { Cash and Receivables } & \$ 75,000 & \$ 145,000 \
\hline \text { Merchandise Inventory } & 215,000 & 170,000 \
\hline \text { Property, Plant and Equipment, net } & 750,000 & 800,000 \
\hline \text { Total Assets } & \$ 1,040,000 & \$ 1,115,000 \
\hline \text { Total Liabilities } & \$ 495,000 & \$ 435,000 \
\hline
\end{array}$$ For the vertical analysis,what is the percentage of current assets as of December 31,2017? (Round your answer to two decimal places. )

Quizplus · Accepted Answer

Current assets for 2017 are Cash and Receivables ($75,000) plus Merchandise Inventory ($215,000), totaling $290,000. The percentage is calculated as ($290,000 / $1,040,000) * 100 = 27.88%.

Brink Moving Company Reported the Following Amounts on Its Balance