Allstate Moving Company reported the following amounts on its balance sheet as of December 31,2019 and December 31,2018: $$\begin{array} { | l | r | r | }
\hline & { 2019 } & { 2018 } \
\hline \text { Cash and Receivables } & \$ 165,000 & \$ 75,000 \
\hline \text { Merchandise Inventory } & 175,000 & 250,000 \
\hline \text { Property, Plant and Equipment, net } & 820,000 & 780,000 \
\hline \text { Total Assets } & \$ 1,160,000 & \$ 1,105,000 \
\hline \text { Total Liabilities } & \$ 475,000 & \$ 385,000 \
\hline
\end{array}$$ For the vertical analysis,what is the percentage of current assets as of December 31,2019? (Round your answer to two decimal places.)
A) 29.31%
B) 29.41%
C) 41.67%
D) 41.46%

Question

Allstate Moving Company reported the following amounts on its balance sheet as of December 31,2019 and December 31,2018: $$\begin{array} { | l | r | r | } 
\hline & { 2019 } &  { 2018 } \
\hline \text { Cash and Receivables } & \$ 165,000 & \$ 75,000 \
\hline \text { Merchandise Inventory } & 175,000 & 250,000 \
\hline \text { Property, Plant and Equipment, net } & 820,000 & 780,000 \
\hline \text { Total Assets } & \$ 1,160,000 & \$ 1,105,000 \
\hline \text { Total Liabilities } & \$ 475,000 & \$ 385,000 \
\hline
\end{array}$$ For the vertical analysis,what is the percentage of current assets as of December 31,2019? (Round your answer to two decimal places.)
A) 29.31%
B) 29.41%
C) 41.67%
D) 41.46%

Quizplus · Accepted Answer

The percentage of current assets as of December 31, 2019, is calculated as follows:Current Assets = Cash and Receivables + Merchandise InventoryCurrent Assets = $165,000 + $175,000Current Assets = $340,000Percentage of Current Assets = (Current Assets / Total Assets) * 100Percentage of Current Assets = ($340,000 / $1,160,000) * 100Percentage of Current Assets = 29.31%

Allstate Moving Company Reported the Following Amounts on Its Balance