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Please Refer to the Vertical Analysis of a Section of a Balance

Question 37

Multiple Choice

Please refer to the vertical analysis of a section of a balance sheet,shown below:  (Dollar amounts in millions)  20172016 Amount % of total  Amount % of total  Assets  Current assets:  Cash $100003.7%$72002.9% Accounts receivable, net 156005.7%168006.7% Inventory 3800013.9%3100012.4% Total current assets 6360023.2%5500022.0% Property, plant and equipment, net 19500071.3%16800067.2% Other non-current assets 150005.5%2710010.8% Total assets $273600100.0%$250100100.0%\begin{array}{|c|c|c|c|c|}\hline \text { (Dollar amounts in millions) } & 2017 & & 2016 & \\\hline & \text { Amount } & \% \text { of total } & \text { Amount } & \% \text { of total } \\\hline \text { Assets } & & & & \\\hline \text { Current assets: } & & & & \\\hline \text { Cash } & \$ 10000 & 3.7 \% & \$ 7200 & 2.9 \% \\\hline \text { Accounts receivable, net } & 15600 & 5.7 \% & 16800 & 6.7 \% \\\hline \text { Inventory } & 38000 & 13.9 \% & 31000 & 12.4 \% \\\hline \text { Total current assets } & 63600 & 23.2 \% & 55000 & 22.0 \% \\\hline \text { Property, plant and equipment, net } & 195000 & 71.3 \% & 168000 & 67.2 \% \\\hline \text { Other non-current assets } & 15000 & 5.5 \% & 27100 & 10.8 \% \\\hline \text { Total assets } & \$ 273600 & 100.0 \% & \$ 250100 & 100.0 \% \\\hline\end{array} Which of the following statements accurately describes the 13.9% shown for Inventory in 2017?


A) In 2017,inventory grew 13.9% over the previous year.
B) In 2017,inventory was equal to 13.9% of the cash balance.
C) Inventory declined as a percentage of total assets over the two year period.
D) In 2017,inventory is equal to 13.9% of total assets.

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