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Vision software Limited reported the following amounts on its balance sheet at December 31, 2020, 2019 and 2018. Sales and profit are high Nevertheless Vision
Vision software Limited reported the following amounts on its balance sheet at December 31, 2020, 2019 and 2018.
Sales and profit are high Nevertheless Vision is expecting a cash shortage.
Perform a vertical analysis of Vision Software's assets at the end of year 2020, 2019 and 2018. Use the analysis to explain the reason for the cash shortage.
Data table Cash Receivables, net Inventory Prepaid expenses Property, plant, and equipment, net. Total assets $ $ 2020 6,100 33,000 156,000 2,700 84,200 282,000 $ $ 2019 6,100 24,000 113,000 2,700 80,200 226,000 $ $ 2018 5,100 21,000 80,000 1,700 81,200 189,000
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Answer Based on the given data we can perform a vertical analysis of Vision Softwares assets at the end of each year Year 2020 Cash 6100 increase from 5100 in 2019 Receivables net 33000 increase from ...Get Instant Access to Expert-Tailored Solutions
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