Modern Moving Company reported the following amounts on its balance sheet as of December 31,2019 and December 31,2018: $$\begin{array} { | l | r | r | }
\hline & { 2019 } & { 2018 } \
\hline \text { Cash and Receivables } & \$ 155,000 & \$ 145,000 \
\hline \text { Merchandise Inventory } & 205,000 & 160,000 \
\hline \text { Property, Plant and Equipment, net } & 850,000 & 730,000 \
\hline \text { Total Assets } & \$ 1,210,000 & \$ 1,035,000 \
\hline \text { Total Liabilities } & \$ 535,000 & \$ 475,000 \
\hline
\end{array}$$ For the vertical analysis,what is the percentage of stockholders' equity as of December 31,2019? (Round your answer to two decimal places.)
A) 100.00%
B) 54.11%
C) 55.79%
D) There is not enough information provided to make this computation.

Question

Modern Moving Company reported the following amounts on its balance sheet as of December 31,2019 and December 31,2018: $$\begin{array} { | l | r | r | } 
\hline & { 2019 } & { 2018 } \
\hline \text { Cash and Receivables } & \$ 155,000 & \$ 145,000 \
\hline \text { Merchandise Inventory } & 205,000 & 160,000 \
\hline \text { Property, Plant and Equipment, net } & 850,000 & 730,000 \
\hline \text { Total Assets } & \$ 1,210,000 & \$ 1,035,000 \
\hline \text { Total Liabilities } & \$ 535,000 & \$ 475,000 \
\hline
\end{array}$$ For the vertical analysis,what is the percentage of stockholders' equity as of December 31,2019? (Round your answer to two decimal places.)
A) 100.00%
B) 54.11%
C) 55.79%
D) There is not enough information provided to make this computation.

Quizplus · Accepted Answer

55.79%To find the percentage of stockholders' equity as of December 31, 2019, first calculate the stockholders' equity by subtracting total liabilities from total assets for 2019: $1,210,000 - $535,000 = $675,000. Then, divide the stockholders' equity by total assets and multiply by 100 to get the percentage: ($675,000 / $1,210,000) * 100 = 55.79%.

Modern Moving Company Reported the Following Amounts on Its Balance