Question

1

Using the following to create a vertical analysis, what percentage would be reported for Property, Plant & Equipment?

	2015	2014
Common Stock	$ 300,000	$ 220,000
Current Assets	$ 100,000	$ 110,000
Current Liabilities	$    50,000	$    90,000
Intangible Assets	$ 120,000	$ 130,000
Investments	$ 200,000	$ 200,000
Long-term Liabilities	$ 250,000	$ 275,000
Other Assets	$    80,000	$    75,000
Property, Plant & Equipment	$ 300,000	$ 250,000
Retained Earnings	$ 200,000	$ 180,000

		32.7%
		62.3%
		25.6%
		44,2%

2Use the following to determine total assets.

Common Stock	$300,000
Current Assets	$100,000
Current Liabilities	$50,000
Intangible Assets	$120,000
Investments	$200,000
Long-term Liabilities	$250,000
Other Assets	$80,000
Property, Plant & Equipment	$300,000
Retained Earnings	$200,000

Answer 1

1) Vertical analysis of property, plant and equipment :

Total assets = 100000+120000+200000+80000+300000 = 800000

2015 Vertical analysis = 300000/800000 = 37.5%

2014 Vertical analysis = 250000/765000 = 32.7%

So answer is a) 32.7%

2) Total assets

Current assets	100000
Intangible assets	120000
Investments	200000
Other assets	80000
Property, plant and equipment	300000
Total assets	800000