Explanation Given Information: The assets and liabilities for O’Dell’s Nursery for December 31, 2016 are, The assets are $12842 in cash, $5836 in accounts receivable, and $18917 in merchandise inventory where the liabilities are $8968 in accounts payable, $2582 in wages payable and the owner’s capital is $26045. The assets and liabilities for O’Dell’s Nursery for December 31, 2017 are, The assets are $8917 in cash, $7521 in accounts receivable, and $17826 in merchandise inventory where the liabilities are $10215 in accounts payable, $3716 in wages payable and the owner’s capital is $20333. Formula used: 1: Figure out the record and count the total assets using the steps. A: Arrange the current assets and make a line beneath the last entry. B: Add the entries and record the total current assets and making a line beneath the total. C: Repeat step A for plant and equipment assets. Repeat step B for total plant and equipment asses. D: Add the category totals and make a double line beneath the grand total. Total assets = Total current assets + Total plant and equipment 2: Find and record the total liabilities using the steps: A: Perform step 1B for total current liabilities and step 1A for current liabilities. B: Perform step 1B to total long-term liabilities and step 1A to long term liabilities. C: Add the category totals and make a line beneath the total. Total liabilities = Total current liabilities + Total long term liabilities 3: Figure out the total owner’s equity and record. A: Arrange the equity entries and make a line beneath the last most entry. B: sum the entries and make a line beneath the last most entry. 4: figure out the total liabilities and record owner’s equity. Sum the total liabilities to the total owner’s equity and make a double line below the grand total. Total liabilities and owner's equality = Total liabilities + Owner's equity 5: A: Make sure that the two line grand totals from step 1 and step 4 are equal. Total Assets = Total liabilities + Owner's equity B: Make an extra column and label it as percent: For every item divide the number of the items by the total assets and then multiply with 100% to get the results in percent, Percent of total assets = amount of item total assets × 100 % Consider the assets and liabilities for O’Dell’s Nursery for December 31, 2017 are, The assets are $8917 in cash, $7521 in accounts receivable, and $17826 in merchandise inventory where the liabilities are $10215 in accounts payable, $3716 in wages payable and the owner’s capital is $20333. Therefore, the total assets are, Total Assets = $ 8917 + $ 7521 + $ 17826 = $ 34264 For every item divide the number of the items by the total assets and then multiply with 100% to get the results in percent, Percentage of cash, Cash = 8917 34264 × 100 % = 26.0 % Percentage accounts receivable, Accounts receivable = 7521 34264 × 100 % = 22.0 % Percentage merchandise as, Merchandise inventory = 17826 34264 × 100 % = 52.0 % Percentage payable as, Accounts payable = 10215 34264 × 100 % = 29.8 % Percentage wages as, Wages payable = 3716 34264 × 100 % = 10.8 % Percentage total current liabilities as, Total current liabilities = 13931 34264 × 100 % = 40.7 % Percentage capital as, B . Percentage capital = 20333 34264 × 100 % = 59.3 % The assets and liabilities for O’Dell’s Nursery for December 31, 2016 are, The assets are $12842 in cash, $5836 in accounts receivable, and $18917 in merchandise inventory where the liabilities are $8968 in accounts payable, $2582 in wages payable and the owner’s capital is $26045

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ISBN: 8220103633802

Author: NOBLE

Publisher: RENT PEARS

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Chapter 21.1, Problem 8SE

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To calculate: A vertical analysis balance sheet of O’Dell’s Nursery to December 31, 2016 and 2017.

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Chapter 21.1, Problem 7SE

Chapter 21.1, Problem 9SE

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Ch. 21.1 - Prob. 1-1SC Ch. 21.1 - Prob. 1-2SC Ch. 21.1 - Prob. 1-3SC Ch. 21.1 - Prob. 1-4SC Ch. 21.1 - Prob. 2-1SC Ch. 21.1 - Prob. 2-2SC Ch. 21.1 - Prob. 2-3SC Ch. 21.1 - Prob. 2-4SC Ch. 21.1 - Prob. 3-1SC Ch. 21.1 - Prob. 3-2SC

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A vertical analysis balance sheet of O’Dell’s Nursery to December 31, 2016 and 2017.

Solution Summary: The author calculates the vertical analysis balance sheet of O'Dell's Nursery for December 31, 2016 and 2017.

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To calculate: A vertical analysis balance sheet of O’Dell’s Nursery to December 31, 2016 and 2017.

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