McCormick Software reported the following amounts on its balance sheets at December 31, 2012, 2011, and 2010:
Question:
Sales and profits are high. Nevertheless, McCormick is experiencing a cash shortage. Perform a vertical analysis of McCormick Softwares assets at the end of years 2012, 2011, and 2010. Use the analysis to explain the reason for the cashshortage.
Transcribed Image Text:
2012 2011 S 23,200 Receivables, net....34,800 Inventory..266,800 34,800 $ 15,600 20,800 197,600 41.600 2010 S14,340 23,900 148,180 33.460 Prepaid expenses.. Property, plant, and equipment, net Total assets .. 220,400 $580,000 244,400 $520,000 $478,000
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Financial accounting
ISBN: 978-0132751124
9th edition
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
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