Allstate Moving Company reported the following amounts on its balance sheet as of December 31, 2019 and December 31, 2018: 20192018Cash and Receivables$ 95 comma 000$95,000$ 125 comma 000$125,000Merchandise Inventory165 comma 000165,000190 comma 000190,000Property, Plant and Equipment, net750 comma 000750,000770 comma 000770,000Total Assets$ 1 comma 010 comma 000$1,010,000$ 1 comma 085 comma 000$1,085,000Total Liabilities$ 485 comma 000$485,000$ 445 comma 000$445,000 For the vertical analysis, what is the percentage of current assets as of December 31, 2019? (Round your answer to two decimal places.)A.40.9140.91% B.29.0329.03% C.25.7425.74% D.34.6734.67%

Vertical analysis: The comparison of an item of a financial statement against the total amount of…

Answered: Allstate Moving Company reported the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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	$ 95 comma 000$95,000	$ 125 comma 000$125,000
Merchandise Inventory	165 comma 000165,000	190 comma 000190,000
Property, Plant and Equipment, net	750 comma 000750,000	770 comma 000770,000
Total Assets	$ 1 comma 010 comma 000$1,010,000	$ 1 comma 085 comma 000$1,085,000
Total Liabilities	$ 485 comma 000$485,000	$ 445 comma 000$445,000

For the vertical analysis, what is the percentage of current assets as of December 31, 2019? (Round your answer to two decimal places.)

40.9140.91%

29.0329.03%

25.7425.74%

34.6734.67%

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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