A corporation reported cash of $14,000 and total assets of $178,300 on its balance sheet.Its common-size percent for cash equals:
A)0.0785%.
B)7.85%.
C)12.73%.
D)1273%.
E)7850%.

Question

Quizplus · Accepted Answer

To calculate the common-size percentage for cash, we need to divide the amount of cash by the total assets and then multiply by 100:

Cash/Common-Size Total Assets = $14,000/$178,300 = 0.0785 or 7.85%

Therefore, the common-size percent for cash is 7.85%. The correct answer is B).

A Corporation Reported Cash of $14,000 and Total Assets of $178,300