1. Complete the vertical analysis by computing each line item as a percentage of total assets. TIP: Accounts Receivable was 5 percent, computed as ($312 + $6,099). 2-a. What percentages of Big World Games assets relate to intangibles versus property and equipment? 2-b. Which of these two asset groups is more significant to Big World Games business?

Financial And Managerial Accounting
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ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
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A condensed balance sheet for Big World Games Incorporated, and a partially completed vertical analysis are presented below.
Required:
1. Complete the vertical analysis by computing each line item as a percentage of total assets. TIP: Accounts Receivable was 5
percent, computed as ($312 ÷ $6,099).
2-a. What percentages of Big World Games assets relate to intangibles versus property and equipment?
2-b. Which of these two asset groups is more significant to Big World Games business?
Complete this question by entering your answers in the tabs below.
Req 1
Req 2A
Complete the vertical analysis by computing each line item as a percentage of total assets. TIP: Accounts Receivable was 5 percent, computed as ($312 ÷
$6,099). (Round your answers to the nearest whole percent.)
Cash and Short-Term Investments
Accounts Receivable, Net
Inventory
Other Current Assets
Req 2B
Intangibles
Property and Equipment, Net
Other Assets
Total Assets
$
BIG WORLD GAMES INCORPORATED
Balance Sheet (summarized)
March 31, 2019
(in millions of U.S. dollars)
2,775
312
44
305
1,960
550
153
$ 6,099
45 % Accounts Payable
5 % Deferred Revenue
1 % Notes Payable (long-term)
%
Total Liabilities
% Common Stock
% Retained Earnings
3% Total Stockholders' Equity
100 % Total Liabilities & Stockholders' Equity
$
$
119
728
1,939
2,786
3,278
35
3,313
6,099
2%
%
32 %
46 %
%
1%
54 %
100 %
Transcribed Image Text:A condensed balance sheet for Big World Games Incorporated, and a partially completed vertical analysis are presented below. Required: 1. Complete the vertical analysis by computing each line item as a percentage of total assets. TIP: Accounts Receivable was 5 percent, computed as ($312 ÷ $6,099). 2-a. What percentages of Big World Games assets relate to intangibles versus property and equipment? 2-b. Which of these two asset groups is more significant to Big World Games business? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Complete the vertical analysis by computing each line item as a percentage of total assets. TIP: Accounts Receivable was 5 percent, computed as ($312 ÷ $6,099). (Round your answers to the nearest whole percent.) Cash and Short-Term Investments Accounts Receivable, Net Inventory Other Current Assets Req 2B Intangibles Property and Equipment, Net Other Assets Total Assets $ BIG WORLD GAMES INCORPORATED Balance Sheet (summarized) March 31, 2019 (in millions of U.S. dollars) 2,775 312 44 305 1,960 550 153 $ 6,099 45 % Accounts Payable 5 % Deferred Revenue 1 % Notes Payable (long-term) % Total Liabilities % Common Stock % Retained Earnings 3% Total Stockholders' Equity 100 % Total Liabilities & Stockholders' Equity $ $ 119 728 1,939 2,786 3,278 35 3,313 6,099 2% % 32 % 46 % % 1% 54 % 100 %
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ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,