1. Complete the vertical analysis by computing each line item as a percentage of total assets. TIP: Accounts Receivable was 5 percent, computed as ($312 + $6,099). 2-a. What percentages of Big World Games assets relate to intangibles versus property and equipment? 2-b. Which of these two asset groups is more significant to Big World Games business?
1. Complete the vertical analysis by computing each line item as a percentage of total assets. TIP: Accounts Receivable was 5 percent, computed as ($312 + $6,099). 2-a. What percentages of Big World Games assets relate to intangibles versus property and equipment? 2-b. Which of these two asset groups is more significant to Big World Games business?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![A condensed balance sheet for Big World Games Incorporated, and a partially completed vertical analysis are presented below.
Required:
1. Complete the vertical analysis by computing each line item as a percentage of total assets. TIP: Accounts Receivable was 5
percent, computed as ($312 ÷ $6,099).
2-a. What percentages of Big World Games assets relate to intangibles versus property and equipment?
2-b. Which of these two asset groups is more significant to Big World Games business?
Complete this question by entering your answers in the tabs below.
Req 1
Req 2A
Complete the vertical analysis by computing each line item as a percentage of total assets. TIP: Accounts Receivable was 5 percent, computed as ($312 ÷
$6,099). (Round your answers to the nearest whole percent.)
Cash and Short-Term Investments
Accounts Receivable, Net
Inventory
Other Current Assets
Req 2B
Intangibles
Property and Equipment, Net
Other Assets
Total Assets
$
BIG WORLD GAMES INCORPORATED
Balance Sheet (summarized)
March 31, 2019
(in millions of U.S. dollars)
2,775
312
44
305
1,960
550
153
$ 6,099
45 % Accounts Payable
5 % Deferred Revenue
1 % Notes Payable (long-term)
%
Total Liabilities
% Common Stock
% Retained Earnings
3% Total Stockholders' Equity
100 % Total Liabilities & Stockholders' Equity
$
$
119
728
1,939
2,786
3,278
35
3,313
6,099
2%
%
32 %
46 %
%
1%
54 %
100 %](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2b3f7f60-ea7d-412d-bfab-14e1e3d92302%2F7ba35b77-5dd8-435d-89ab-3c3575ef3bfb%2Fndphw9_processed.png&w=3840&q=75)
Transcribed Image Text:A condensed balance sheet for Big World Games Incorporated, and a partially completed vertical analysis are presented below.
Required:
1. Complete the vertical analysis by computing each line item as a percentage of total assets. TIP: Accounts Receivable was 5
percent, computed as ($312 ÷ $6,099).
2-a. What percentages of Big World Games assets relate to intangibles versus property and equipment?
2-b. Which of these two asset groups is more significant to Big World Games business?
Complete this question by entering your answers in the tabs below.
Req 1
Req 2A
Complete the vertical analysis by computing each line item as a percentage of total assets. TIP: Accounts Receivable was 5 percent, computed as ($312 ÷
$6,099). (Round your answers to the nearest whole percent.)
Cash and Short-Term Investments
Accounts Receivable, Net
Inventory
Other Current Assets
Req 2B
Intangibles
Property and Equipment, Net
Other Assets
Total Assets
$
BIG WORLD GAMES INCORPORATED
Balance Sheet (summarized)
March 31, 2019
(in millions of U.S. dollars)
2,775
312
44
305
1,960
550
153
$ 6,099
45 % Accounts Payable
5 % Deferred Revenue
1 % Notes Payable (long-term)
%
Total Liabilities
% Common Stock
% Retained Earnings
3% Total Stockholders' Equity
100 % Total Liabilities & Stockholders' Equity
$
$
119
728
1,939
2,786
3,278
35
3,313
6,099
2%
%
32 %
46 %
%
1%
54 %
100 %
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