A condensed balance sheet for Northwest Airlines and a partially completed vertical analysis are presented below.

Required:

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

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

3. What percentage of Northwest?s assets is financed by total shareholders? equity? By total liabilities?

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NORTHWEST AIRLINES Balance Sheet (summarized) December 31, 2017 (in millions) $ 1,261 8% Current Liabilities (b)% $ 3,305 Cash Accounts Receivable Inventory of Parts and Supplies Long-Term Liabilities 195 38 5,921 9,226 Total Liabilities 243 60 Other Current Assets 2,580 1,100 17 Contributed Capital Property and Equipment, Net Retained Earnings Total Shareholders' Equity (a) 10,578 33 5,137 6,237 Other Assets 4 606 Total Liabilities & Shareholders' Equity $ 15,463 Total Assets $15,463 100% 100%