Russell's Hardware has inventory of $218,000, equity of $421,800, total assets of $647,700, and sales of $587,200. What is the common-size percentage for the inventory account?
A) 26.81 percent
B) 33.66 percent
C) 37.12 percent
D) 49.09 percent
E) 51.68 percent

Question

Quizplus · Accepted Answer

To calculate the common-size percentage for inventory, we divide the inventory amount ($218,000) by total assets ($647,700) and then multiply by 100.

$218,000 ÷ $647,700 x 100 = 33.66 percent

Therefore, the common-size percentage for the inventory account is 33.66 percent, which is option B.

Russell's Hardware Has Inventory of $218,000, Equity of $421,800, Total