Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Craft Designs reported the following amounts on its balance sheets at December 31, 2021, 2020, and 2019: (Click the icon to view the data.)

image text in transcribed

Craft Designs reported the following amounts on its balance sheets at December 31, 2021, 2020, and 2019: (Click the icon to view the data.) Sales and profits are high. Nevertheless, Craft is experiencing a cash shortage. Perform a vertical analysis of the company's assets at the end of years 2019. Use the analysis to explain the reason for the cash shortage. Perform a vertical analysis of Craft Software's assets at the end of years 2021, 2020, and 2019. (Round your answers to the nearest one-tenth of a per enter the % symbol in any of the input fields.) Craft Designs, Inc. Vertical Analysis Years Ended December 31, 2021, 2020, and 2019 2021 2020 2019 Amount Percent Amount Percent Amount Percent Cash $ 15,300 % $ 8,960 % $ 8,140 % Receivables, net 25,500 % 13,440 % 16,280 % Inventory Prepaid expenses Property, plant and equipment, net Total assets 234,600 % 170,240 % 126,170 35,700 % 40,320 % 32,560 198,900 215,040 223,850 % % $ 510,000 $ 448,000 $ 407,000 do do do do % % % % Data table 2021 2020 2019 Cash $ 15,300 $ 8,960 $ 8,140 Receivables, net 25,500 13,440 16,280 Inventory 234,600 170,240 126,170 Prepaid expenses 35,700 40,320 32,560 198,900 215,040 223,850 Property, plant and equipment, net ges Get more he $ 510,000 $ 448,000 $ 407,000 Total assets Clear all

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survey of Accounting

Authors: Carl S Warren

5th Edition

9780538489737, 538749091, 538489731, 978-0538749091

More Books

Students also viewed these Accounting questions

Question

What is a living will?

Answered: 1 week ago

Question

Define tenancy in common.

Answered: 1 week ago

Question

Define joint tenancy.

Answered: 1 week ago