Electronic Arts is a video game company that competes with Activision Blizzard. A condensed balance sheet for Electronic Arts and a partially completed vertical analysis are presented below.

Required:

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

2. What percentages of Electronic Arts’ assets relate to intangibles versus property and equipment? Which of these two asset groups is more significant to Electronic Arts’ business?

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ELECTRONIC ARTS, INC. Balance Sheet (summarized) March 31, 2016 (in millions of U.S. dollars) Cash and Short-Term Investments $3,834 54% Accounts Payable $ 960 14% Accounts Receivable, Net 233 3 Deferred Revenue 1,458 d Inventory 33 1 Notes Payable (1long-term) 1,236 17 Other Current Assets 254 a Total Liabilities 3,654 52 Common Stock Intangibles Property and Equipment, Net 1,767 1,352 e Retained Earnings Total Stockholders' Equity Total Liabilities & Stockholders' Equity 439 2,044 29 Other Assets 490 7 3,396 48 Total Assets $7,050 100% $7,050 100%