Allstate Moving Company reported the following amounts on its balance sheet as of December 31, 2019 and December 31, 2018: 2019 2018 Cash and Receivables $75,000 $145,000 Merchandise Inventory 175,000 250,000 Property, Plant and Equipment, net 820,000 710,000 Total Assets $1,070,000 $1,105,000 Total Liabilities $455,000 $405,000 For the vertical analysis, what is the percentage of current assets as of December 31, 2019? (Round your answer to two decimal places.)

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Business

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19 April, 04:58

Allstate Moving Company reported the following amounts on its balance sheet as of December 31, 2019 and December 31, 2018: 2019 2018 Cash and Receivables $75,000 $145,000 Merchandise Inventory 175,000 250,000 Property, Plant and Equipment, net 820,000 710,000 Total Assets $1,070,000 $1,105,000 Total Liabilities $455,000 $405,000 For the vertical analysis, what is the percentage of current assets as of December 31, 2019? (Round your answer to two decimal places.)

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Answers (1)

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Connor Hopkins · Answer 1

42.52%

Explanation:

Given that

Total Liabilities = $455,000

Total Assets = $1,070,000

The computation of percentage of current assets is shown below:-

Percentage of Total Liabilities = Total Liabilities : Total Assets * 100

= $455,000 : $1,070,000 * 100

= 0.4252 * 100

= 42.52%

Therefore for computing the percentage of current assets we simply apllied the above formula.