Asked by Hallie Canto on May 14, 2024
Verified
In a comparative balance sheet, the Accounts Payable balance for 2019 was $189,330 and total liabilities and equity was $459,265. What is the vertical analysis for Accounts Payable? (Round your answer to two decimal places, X.XX%.)
A) 41.22%
B) (41.22%)
C) 58.78%
D) (58.78%)
Accounts Payable
Liabilities of a business that are due to be paid to creditors within a short period of time, usually one year.
Vertical Analysis
A method of financial statement analysis in which each line item is listed as a percentage of a base figure within the statement.
- Execute a vertical appraisal on financial documentation.
Verified Answer
FM
Fatin MiraaMay 15, 2024
Final Answer :
A
Explanation :
41.22%Vertical analysis is performed by expressing each item in the financial statements as a percentage of a base amount. In this case, the base amount is the total liabilities and equity for 2019, which is $459,265. The Accounts Payable balance is $189,330. To find the vertical analysis percentage for Accounts Payable, divide $189,330 by $459,265 and multiply by 100. This calculation results in approximately 41.22%.
Learning Objectives
- Execute a vertical appraisal on financial documentation.
Related questions
When Doing a Vertical Analysis, Which of the Following Is ...
When Preparing an Income Statement Vertical Analysis, Each Revenue and ...
In the Vertical Analysis of a Balance Sheet, the Base ...
Using Vertical Analysis of the Income Statement, a Company's Net ...
Revenue and Expense Data for Young Technologies Inc (A)Prepare an ...