Sokolsky Designs reported the following amounts on its balance sheets at December 31, 2018, 2017, and 2016:
Question:
Sokolsky Designs reported the following amounts on its balance sheets at December 31, 2018, 2017, and 2016:
Sales and profits are high. Nevertheless, Sokolsky is experiencing a cash shortage. Perform a vertical analysis of the company’s assets at the end of years 2018, 2017, and 2016. Use the analysis to explain the reason for the cash shortage.
Transcribed Image Text:
2016 2018 2017 $ 10,000 $ 4,440 23,200 177,600 $ 3,990 23,940 131,670 15,960 Cash . Receivables, net... Inventory... Prepaid expenses . Property, plant, and equipment, net Total assets 35,000 240,000 15,000 21,200 200,000 $500,000 217,560 $444,000 223,440 $399,000
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Related Book For
Financial Accounting
ISBN: 978-0134725987
12th edition
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
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