Question

Using these data from the comparative balance sheet of Blossom Company, perform vertical analysis. (Round percentages to 1 decimal place, e.g. 12.5%.) Dec. 31, 2017 Dec. 31, 2016 Amount Percentage Amount Percentage Accounts receivable $ 497,000 Enter percentages % $ 435,000 Enter percentages % Inventory $ 735,000 Enter percentages % $ 555,000 Enter percentages % Total assets $3,101,000 Enter percentages % $2,758,000 Enter percentages %

Answer 1

Answer:

For 2017

Account receivable % = Account Receivable/Total Assets x 100

Account receivable % = $ 497,000/$ 3,101,000 * 100

Account receivable % = 0.16027088 * 100

Account receivable % = 16.0%

Inventory % = Inventory/Total Assets *100

Inventory % = $ 735,000/$ 3,101,000 * 100

Inventory % = 0.2370203 * 100

Inventory % = 23.7 %

Total Assets  = $3,101,000 = 100%

For 2016

Account receivable % = Account Receivable/Total Assets * 100

Account receivable % = $ 435,000/$ 2,758,000 * 100

Account receivable % = 0.15772298 * 100

Account receivable % = 15.8%

Inventory % = Inventory/Total Assets * 100

Inventory % = $555,000/$ 2,758,000 * 100

Inventory % = 0.20123277 * 100

Inventory % = 20.1%

Total Assets  = $2,758,000 = 100 %