Vison software reported the following amounts on its balance sheets at December 31, 2020, 2019, and 2018*Data table provided*Sales and profits are high. Nevertheless, Vision is experiencing a cash shortage. Perform a vertical analysis of Vision Software's assets at the end of years 2020, 2019, and 2018.Use the analysis to explain the reason for the cash shortage. CashReceivables, netInventoryPrepaid expensesProperty, plant and equipment,netTotal assetsAmountVision's cash shortage is likely due to the dramaticDecember 31,2020Percent ofTotal100in%%2019PercentAmount of Total100%%Amount2018Percentof Total100%%as a percent of total assets. Cash...Receivables, netInventoryPrepaid expensesProperty, plant, andequipment, net..Total assets20206,00030,000148,0002,00096,000282,000$$20196,00022,000106,0002,00088,000224,000$$20185,00019,00074,0001,00087,000186,000

The Statement of Financial Position -The statement of financial position is the position of the…

Answered: Cash Receivables, net Inventory Prepaid…

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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Vison software reported the following amounts on its balance sheets at December 31, 2020, 2019, and 2018

*Data table provided*

Sales and profits are high. Nevertheless, Vision is experiencing a cash shortage. Perform a vertical analysis of Vision Software's assets at the end of years 2020, 2019, and 2018.

Use the analysis to explain the reason for the cash shortage.

Cash
Receivables, net
Inventory
Prepaid expenses
Property, plant and equipment,
net
Total assets
Amount
Vision's cash shortage is likely due to the dramatic
December 31,
2020
Percent of
Total
100
in
%
%
2019
Percent
Amount of Total
100
%
%
Amount
2018
Percent
of Total
100
%
%
as a percent of total assets.

Cash...
Receivables, net
Inventory
Prepaid expenses
Property, plant, and
equipment, net..
Total assets
2020
6,000
30,000
148,000
2,000
96,000
282,000
$
$
2019
6,000
22,000
106,000
2,000
88,000
224,000
$
$
2018
5,000
19,000
74,000
1,000
87,000
186,000

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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