With the statement of financial position below, conduct a vertical analysis. YEAR 1YEAR2ASSETSCURRENT ASSETSCash210,000467,550Accounts Receivable930,000883,200Merchandise Inventory220,000198,500Supplies90,000125,000TOTAL CURRENT ASSETS1,450,0001,674,250NON-CURRENT ASSETSOffice Equipment1,890,0002,378,500Accumulated Depreciation- Office Equipment-800,000-950,000TOTAL NON-CURRENT ASSETS1,090,0001,428,500TOTAL ASSETS2,540,0003,102,750LIABILITIESCURRENT LIABILITIESAccounts PayableSalaries PayableInterest Payable190,000192,830140,000178,50060,00075,000TOTAL CURRENT LIABILITIES390,000446,330NON-CURRENT LIABILITIESNotes Payable580,000450,000TOTAL NON-CURRENT LIABILITIES580,000450,000TOTAL LIABILITIES970,000896,330OWNER'S EQUITY|Shoe Express, Capital1,570,0002,206,420TOTAL LIABILITIES AND OWNER'S EQUITY2,540,0003,102,750

Formula: Each individual line item percentage = Each individual line item / Total Assets

Answered: YEAR 1 YEAR2 ASSETS CURRENT ASSETS Cash…

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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With the statement of financial position below, conduct a vertical analysis.

YEAR 1
YEAR2
ASSETS
CURRENT ASSETS
Cash
210,000
467,550
Accounts Receivable
930,000
883,200
Merchandise Inventory
220,000
198,500
Supplies
90,000
125,000
TOTAL CURRENT ASSETS
1,450,000
1,674,250
NON-CURRENT ASSETS
Office Equipment
1,890,000
2,378,500
Accumulated Depreciation- Office Equipment
-800,000
-950,000
TOTAL NON-CURRENT ASSETS
1,090,000
1,428,500
TOTAL ASSETS
2,540,000
3,102,750
LIABILITIES
CURRENT LIABILITIES
Accounts Payable
Salaries Payable
Interest Payable
190,000
192,830
140,000
178,500
60,000
75,000
TOTAL CURRENT LIABILITIES
390,000
446,330
NON-CURRENT LIABILITIES
Notes Payable
580,000
450,000
TOTAL NON-CURRENT LIABILITIES
580,000
450,000
TOTAL LIABILITIES
970,000
896,330
OWNER'S EQUITY
|Shoe Express, Capital
1,570,000
2,206,420
TOTAL LIABILITIES AND OWNER'S EQUITY
2,540,000
3,102,750

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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