Empire Moving Company reported the following amounts on its Balance Sheet as of December 31, 2018 and December 31, 2019:Account20192018Cash and Receivables $ 105,000.00 $ 165,000.00Merchandise Inventory $ 205,000.00 $ 230,000.00Property, Plant, and Equipment, net $ 810,000.00 $ 710,000.00Total Assets $ 1,120,000.00 $ 1,105,000.00Total Liabilities $ 465,000.00 $ 455,000.00For the vertical analysis, what is the percentage of total liabilities for December 31, 2018? (round your answer to two decimal places)A100.00%B36.26%C41.52%D41.18%

Ratio, horizontal and vertical analysis are the tools used by the financial analyst to measure the…

Answered: Empire 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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Empire Moving Company reported the following amounts on its Balance Sheet as of December 31, 2018 and December 31, 2019:

Account	2019	2018
Cash and Receivables	$ 105,000.00	$ 165,000.00
Merchandise Inventory	$ 205,000.00	$ 230,000.00
Property, Plant, and Equipment, net	$ 810,000.00	$ 710,000.00
Total Assets	$ 1,120,000.00	$ 1,105,000.00
Total Liabilities	$ 465,000.00	$ 455,000.00

For the vertical analysis, what is the percentage of total liabilities for December 31, 2018? (round your answer to two decimal places)

A	100.00%
B	36.26%
C	41.52%
D	41.18%

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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