Answer:
Cash
2021= 7%
2020 =21%
Accounts Receivable
2021 =11%
2020 =6%
Inventory
2021= 17%
2020= 18.5%
Long-term assets
2021=65%
2020=54.5%
Total assets
2021=100%
2020=100%
Explanation:
Preparation of vertical analysis
Using this formula
Vertical analysisPercentage = Asset / Total Assets
Let plug in the formula
Cash 2021 and 2020
2021= $420,000 / $6,000,000 x 100
2021= 7%
2020= $1,050,000 / $5,000,000 x 100
2020= 21%
Accounts Receivable 2021 and 2020
2021=660,000/$6,000,000 x 100
2021= 11%
2020=300,000 / $5,000,000 x 100
2020=6%
Inventory for 2021 and 2020
2021= 1,020,000/$6,000,000 x 100
2021= 17%
2020=925,000/ $5,000,000 x 100
2020=18.5%
Long-term assets for 2021 and 2020
2021=3,900,000/$6,000,000 x 100
2021= 65%
2020= 2,725,000/ $5,000,000 x 100
2020= 54.5%
Total assets for 2021 and 2020
2021=6,000,000/$6,000,000 x 100
2021=100%
2020=5,000,000/ $5,000,000 x 100
2020=100%
VERTICAL ANALYSIS
2021 2020
Cash 420000 7% 1050000 21%
Accounts Receivable
660,000 11% 300,000 6%
Inventory
1,020,000 17% 925,000 18.5%
Long-term assets
3,900,000 65% 2,725,000 54.5%
Total assets
6,000,000 100% 5,000,000 100%
