A condensed balance sheet for Northeast Airlines and a partially completed vertical analysis are presented below. Required: 1. Complete the vertical analysis by computing each missing line item as a percentage of total assets. 2-a. What percentages of Northeast's assets relate to inventory of parts and supplies? 2-b. What percentage Northeast's assets relate to property and equipment? 2-c. Which of these two asset groups is more significant to Northeast's business? 3. What percentage of Northeast's assets is financed by total stockholders' equity? By total liabilities? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 2B Reg 20 Reg 3 Complete the vertical analysis by computing each missing line item as a percentage of total assets. (Round your answers to the nearest whole percent.) NORTHEAST AIRLINES Balance Sheet (summarized) December 31, 2016 (in millions of U.S. dollars) $ 5,663 Cash % Current Liabilities 6.867 29 % Accounts Receivable 424 2 Long-Term Liabilities 8,236 35 Inventory of Parts and Supplies 532 2 Total Liabilities 15,103 64 Other Current Assets 2,012 Common Stock 2,219 9 Property and Equipment, Net Other Assets 13,390 Retained Earnings 6,448 27 1,749 7 Total Stockholders' Equity 8,667 36 Total Assets $ 23,770 99 % Total Liabilities & Stockholders' Equity $ 23,770 100 %
A condensed balance sheet for Northeast Airlines and a partially completed vertical analysis are presented below. Required: 1. Complete the vertical analysis by computing each missing line item as a percentage of total assets. 2-a. What percentages of Northeast's assets relate to inventory of parts and supplies? 2-b. What percentage Northeast's assets relate to property and equipment? 2-c. Which of these two asset groups is more significant to Northeast's business? 3. What percentage of Northeast's assets is financed by total stockholders' equity? By total liabilities? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 2B Reg 20 Reg 3 Complete the vertical analysis by computing each missing line item as a percentage of total assets. (Round your answers to the nearest whole percent.) NORTHEAST AIRLINES Balance Sheet (summarized) December 31, 2016 (in millions of U.S. dollars) $ 5,663 Cash % Current Liabilities 6.867 29 % Accounts Receivable 424 2 Long-Term Liabilities 8,236 35 Inventory of Parts and Supplies 532 2 Total Liabilities 15,103 64 Other Current Assets 2,012 Common Stock 2,219 9 Property and Equipment, Net Other Assets 13,390 Retained Earnings 6,448 27 1,749 7 Total Stockholders' Equity 8,667 36 Total Assets $ 23,770 99 % Total Liabilities & Stockholders' Equity $ 23,770 100 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:A condensed balance sheet for Northeast Airlines and a partially completed vertical analysis are presented
below.
ts
Required:
1. Complete the vertical analysis by computing each missing line item as a percentage of total assets.
2-a. What percentages of Northeast's assets relate to inventory of parts and supplies?
2-b. What percentage Northeast's assets relate to property and equipment?
2-c. Which of these two asset groups is more significant to Northeast's business?
3. What percentage of Northeast's assets is financed by total stockholders' equity? By total liabilities?
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Complete this question by entering your answers in the tabs below.
Reg 1
Reg 2A
Reg 2B
Req 20
Req 3
Complete the vertical analysis by computing each missing line item as a percentage of total assets. (Round your answers to the
nearest whole percent.)
NORTHEAST AIRLINES
Balance Sheet (summarized)
December 31, 2016
(in millions of U.S. dollars)
Cash
$ 5,663
% Current Liabilities
$ 6,867
29 %
Accounts Receivable
Long-Term Liabilities
424
2
8,236
35
Inventory of Parts and Supplies
532
2
Total Liabilities
15,103
64
Other Current Assets
2,012
Common Stock
2,219
9
Property and Equipment, Net
13,390
Retained Earnings
6,448
27
Other Assets
1,749
Total Stockholders' Equity
8,667
36
Total Assets
$ 23,770
99 % Total Liabilities & Stockholders' Equity
$ 23,770
100 %
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