A condensed balance sheet for Simultech Corporation and a partially completed vertical analysis are presented below.

Required:

1. Complete the vertical analysis by computing each line item from (a) through (d) as a percentage of total assets. Round to the nearest whole percentage.

2. What percentages of Simultech?s assets relate to inventories versus property and equipment? What does this tell you about the relative significance of these two assets to Simultech?s business?

3. What percentage of Simultech?s assets is financed by total shareholder?s equity? By total liabilities?

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SIMULTECH CORPORATION Balance Sheet (summarized) January 31, 2017 (in millions) Current Liabilities Cash and Short-Term Investments $ 433 27% 409 29% Long-Term Liabilities Total Liabilities Accounts Receivable 294 19 495 33 206 14 904 Inventories (b) (c) Other Current Assets Property and Equipment (a) 109 118 Contributed Capital Retained Earnings 27 492 30 Total Shareholders' Equity Total Liabilities & Shareholders' Equity Other Assets 445 610 29 (d) 100% $1,514 Total Assets 100% $1,514