1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
loris [4]
3 years ago
10

The accountant at ABC Water Company has been asked to perform a vertical analysis of the company's debts relative to their reven

ue. In 2015, ABC had $375,421 in revenue and $70,332 in debts; in 2016, they had $437,879 in revenue and $90,765 in debts. Using this information, calculate what percentage of their revenue in 2016 was debt, and how much it had increased from 2015?
Business
1 answer:
Lemur [1.5K]3 years ago
6 0

Answer:

21% : and 3%

Explanation:

Vertical analysis is a financial analysis approach where line items of a financial statement are compared against a base figure.  The base figure may be at the top or bottom of the financial statement hence the term vertical analysis. In practice, revenue is the base figure in most reports.

For ABC Company, revenue is the base figure. In 2016, the debts were $90,765, and revenue was $437,879.

As a percentage, debt would be

= $90,000/$437, 879 x100

=0.20728 x 100

=20.728 %

=21%

in 2015, debts were  $70,332, and revenue were $375,421

As a percentage, debt would be

=$70, 765/ $375,421 x 100

=0.18734

=18.73

=19%

in 2016, the debt percentage increased from 19% in 2015 to 21% .  3% increment

You might be interested in
Which organization was designed to keep prices steady, fight inflation and ration foods
adelina 88 [10]
The Office of Price Administration (OPA) was established within the Office for Emergency Management on August 28, 1941, in order to control prices (and thus inflation) and rents after the outbreak of World War II.
6 0
3 years ago
Net capital spending: Multiple Choice is equal to ending net fixed assets minus beginning net fixed assets. is equal to zero if
seropon [69]

Answer:

Is equal to zero if the decrease in the net fixed assets is equal to the depreciation expense

Explanation:

Net capital spending in domain of finance can be regarded as net amount that is been spent by a firm for the purpose of acquiring fixed assets at a particular period of time, this gives indication regards the growth of that fixed assets of that particular company. During the expansion phase there is usually high amount of net capital spending. It should be noted that Net capital spending Is equal to zero if the decrease in the net fixed assets is equal to the depreciation expense

3 0
3 years ago
Capital city of Morocco​
8090 [49]

Answer:Rabat

Explanation:

7 0
3 years ago
Which of the following are correct descriptions of large corporations? a) Managers no langer have the incentive to act in their
balu736 [363]

Answer:

<u>b) The corporation survives even if managers are dismissed.</u>

<u>c) Shareholders can sell their holdings without disrupting the business.</u>

<u>Explanation:</u>

The above statements are correct descriptions of large corporations if consider;

1. A corporation is viewed as a legal entity, and so is believed to exist (survive) even if those who manage the corporation are dismissed.

2. Put simply, a shareholder holds some owns certain decision rights of a  corporation, thus, the shareholder can decide to sell their holdings to an interested party. However, the business would not be disrupted, as only the holdings of a particular shareholder were sold, and the new shareholder would normally want the best interest of the company that's why he made the deal.  

3 0
3 years ago
What effects did European colonization have on Native Americans in North America? In your response, be sure to consider: A. what
Galina-37 [17]

Answer:

European colonization devastated the lives of Native Americans in the US. Currently about 5 million native Americans live in the US, while the total US population is 329.45 million (roughly 1.5%). The vast majority of Native Americans (78%) currently live in Oklahoma, Arizona, and California. none of these states was a part of the original American colonies so that can give us an idea that the general policy taken by European colonists was to wipe them out.

In the US, Native American societies were not as advanced as those societies in Mexico and Central America (Aztecs and Mayans), or the Incas in South America. At first European colonists didn't confront the Native Americans directly since they actually received a lot of help from them (remember Thanksgiving).

But as American colonies started to grow and develop, Native Americans became a problem because no one likes to be thrown out of their homes, so conflicts started.

Spanish colonists had a religious view on Native Americans and they tried to convert them to Christianity after they took everything that they considered valuable from them. Mexico which is also part of North America, currently has a very large Native American and mestizo population (combined 90%).

On the other hand, British and Dutch colonists took a different approach and once the Native Americans were not useful anymore, they basically killed them all (or the vast majority).

4 0
3 years ago
Other questions:
  • Which of the following is not an internal control activity for cash? a. The functions of cash record keeping and cash custody sh
    14·1 answer
  • The Blue Lagoon is considering a project with a five-year life. The project requires $32,000 of fixed assets that are classified
    15·1 answer
  • Which of the following is considered to be an accrued expense?
    8·1 answer
  • Which of the following best describes ethics?
    14·2 answers
  • Drive-in-Style Motors follows a traditional manufacturing system. It produces a fixed number of cars every month. It is now plan
    13·1 answer
  • Over its history, suppose that France has borrowed more from the rest of the world than it has lent to the rest of the world. Th
    5·1 answer
  • When inventory increases, which costing method generally results in higher net income?.
    7·1 answer
  • ____________________________________ tries to welcome participation by all organizational members and to view each person as val
    11·1 answer
  • some nations make manufacturers responsible for reducing e-waste. companies must recover used and discarded electronic equipment
    12·1 answer
  • The discovery of natural gas in the american midwest should lead to a(n) ____ in the price of land because of a(n) _____ land.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!