A condensed balance sheet for Simultech Corporation and a partially completed vertical analysis are presented below. Complete the vertical analysis by computing each missing line item as a percentage of total assets. (Round your answers to the nearest whole percent.) SIMULTECH CORPORATION Balance Sheet (summarized) January 31 (in millions of U.S. dollars) Cash $433 29 % Current Liabilities $409 27 % Accounts Receivable 294 19 Long-term Liabilities 495 33 Inventory 206 14 Total Liabilities 904 Other Current Assets 109 Common Stock 118 Property and Equipment 27 2 Retained Earnings 492 32 Other Assets 445 29 Total Stockholders’ Equity 610 Total Assets $1,514 100 % Total Liabilities & Stockholders’ Equity $1,514 100 % 2A. What percentage of Simultech’s total assets relate to inventory? (Round your answer to the nearest whole percent.) 2B. What percentage of Simultech’s total assets relate to property and equipment? (Round your answer to the nearest whole percent.) 2C. Which of these two asset groups is more significant to Simultech’s business? (Pick one) -Property and equipment is a much more significant asset than inventory -Inventory is a much more significant asset that property and equipment 3. What percentage of Simultech’s assets is financed by total stockholder's equity? By total liabilities? (Round your answers to the nearest whole percent.) Percentage Total Stockholder's Equity % Total Liabilities %

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4E

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A condensed balance sheet for Simultech Corporation and a partially completed vertical analysis are presented below.

Complete the vertical analysis by computing each missing line item as a percentage of total assets. (Round your answers to the nearest whole percent.)

SIMULTECH CORPORATION
Balance Sheet (summarized)
January 31
(in millions of U.S. dollars)
Cash	$433	29	%	Current Liabilities	$409	27	%
Accounts Receivable	294	19		Long-term Liabilities	495	33
Inventory	206	14		Total Liabilities	904
Other Current Assets	109			Common Stock	118
Property and Equipment	27	2		Retained Earnings	492	32
Other Assets	445	29		Total Stockholders’ Equity	610
Total Assets	$1,514	100	%	Total Liabilities & Stockholders’ Equity	$1,514	100	%

2A. What percentage of Simultech’s total assets relate to inventory? (Round your answer to the nearest whole percent.)

2B. What percentage of Simultech’s total assets relate to property and equipment? (Round your answer to the nearest whole percent.)

2C. Which of these two asset groups is more significant to Simultech’s business? (Pick one)

-Property and equipment is a much more significant asset than inventory

-Inventory is a much more significant asset that property and equipment

What percentage of Simultech’s assets is financed by total stockholder's equity? By total liabilities? (Round your answers to the nearest whole percent.)

	Percentage
Total Stockholder's Equity		%
Total Liabilities		%

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