Bloom's Garden Center Company
Selected data from the financial statements of Bloom's Garden Center are provided below.

-Refer to the selected data provided for Bloom's Garden Center Company. Which of the following would result from a vertical analysis of Bloom's cash and cash equivalents?
A) Cash and cash equivalents increased by $13,000 or 20.97% during 2012.
B) The free cash flow is $653,800 in 2012.
C) Cash and cash equivalents are 11.03% of total assets in 2012.
D) Cash and cash equivalents are 20% of total assets in 2012.

Question

Bloom's Garden Center Company 
Selected data from the financial statements of Bloom's Garden Center are provided below.
 
-Refer to the selected data provided for Bloom's Garden Center Company. Which of the following would result from a vertical analysis of Bloom's cash and cash equivalents?
A) Cash and cash equivalents increased by $13,000 or 20.97% during 2012. 
B) The free cash flow is $653,800 in 2012. 
C) Cash and cash equivalents are 11.03% of total assets in 2012. 
D) Cash and cash equivalents are 20% of total assets in 2012.

Quizplus · Accepted Answer

Vertical analysis involves expressing each item in a financial statement as a percentage of a base figure, such as total assets. Option C correctly describes cash and cash equivalents as a percentage of total assets.