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

Question 32

Multiple Choice

Please refer to the vertical analysis of a section of a balance sheet, shown below:  (Dollar amounts in millions)  20142013 Amount  % of Total  Amount  % of Total  Assets  Current assets:  Cash $10,0003.7%$7,2002.9% Accounts receivable, net 15,6005.7%16,8006.7% Inventory 38,00013.9%31,00012.4% Total current assets 63,60023.2%55,00022.0% Property, plant and equipment, net 195,00071.3%168,00067.2% Other long-term assets 15,0005.5%27,10010.8% Total assets $273,600100.0%$250,100100.0%\begin{array}{|l|r|r|r|r|}\hline \text { (Dollar amounts in millions) } & 2014 & & 2013 & \\\hline & \text { Amount } & \text { \% of Total } & \text { Amount } & \text { \% of Total } \\\hline \text { Assets } & & & & \\\hline \text { Current assets: } & & & & \\\hline \text { Cash } & \$ 10,000 & 3.7 \% & \$ 7,200 & 2.9 \% \\\hline \text { Accounts receivable, net } & 15,600 & 5.7 \% & 16,800 & 6.7 \% \\\hline \text { Inventory } & 38,000 & 13.9 \% & 31,000 & 12.4 \% \\\hline \text { Total current assets } & 63,600 & 23.2 \% & 55,000 & 22.0 \% \\\hline \text { Property, plant and equipment, net } & 195,000 & 71.3 \% & 168,000 & 67.2 \% \\\hline \text { Other long-term assets } & 15,000 & 5.5 \% & 27,100 & 10.8 \% \\\hline \text { Total assets } & \$ 273,600 & 100.0 \% & \$ 250,100 & 100.0 \% \\\hline\end{array}

-Which of the following statements is valid regarding the data shown above?


A) Cash grew 3.7% over the previous year balance.
B) In 2014, Inventory represented 13.9% of net sales revenues.
C) Other long-term assets dropped 5.5% over the 2-year period.
D) Property, plant and equipment grew as a percentage of total assets over the 2-year period.

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