Question & Answer: …..

<p margin-bottom:0in;margin-bottom:.0001pt;line-height:normal”=”” style=”box-sizing: border-box; margin: 0px 18px 20px; line-height: 23.1px; word-break: break-word; overflow-wrap: break-word; word-wrap: break-word;”>Selected information for Alastair Company is as follows:

2012
Current assets $450,000
Total assets 725,000
Cost of goods sold 700,000
Sales revenue 915,000
Net income 145,000

What is the percentage that would be given to current assets on a common-size balance sheet (round to the nearest percent)?

20 percent

77 percent

100 percent

49 percent

Expert Answer

 

D. 49 percent

The percentage that would be given to current assets on a common-size balance sheet is:

= Current assets / Sales revenue

= $450,000 / $915,000

= 49%

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