The balance sheet for Jennifer Company is given below:
$\begin{array}{ll}
\text { Cash } & \$ 200 \
\text { Accounts Receivable } & 236 \
\text { Inventory } & 388 \
\text { Prepaid Insurance } & 76 \
\text { Fixed Assets } & 452 \
\text { Accumulated Depreciation } & (228)\
\text { Total Assets }&\$1,124
\end{array}$
$$\begin{array} { l l }
\text { Accounts payable } & \$ 152 \
\text { Wages payable } & 32 \
\text { Notes payable } & 420 \
\text { Paid-in capital } & 160 \
\text { Retained earnings } & \underline { 360 } \
\text { Total liabilities and stockholders' equity } & \$ 1,124
\end{array}$$
If a common-size balance sheet was prepared,what would Jennifer Company report for Cash?
A) 17.8%
B) 21.5%
C) 25.2%
D) 62.3%

Question

The balance sheet for Jennifer Company is given below:
$\begin{array}{ll}
\text { Cash } & \$ 200 \
\text { Accounts Receivable } & 236 \
\text { Inventory } & 388 \
\text { Prepaid Insurance } & 76 \
\text { Fixed Assets } & 452 \
\text { Accumulated Depreciation } & (228)\
\text { Total Assets }&\$1,124
\end{array}$
$$\begin{array} { l l } 
\text { Accounts payable } & \$ 152 \
\text { Wages payable } & 32 \
\text { Notes payable } & 420 \
\text { Paid-in capital } & 160 \
\text { Retained earnings } & \underline { 360 } \
\text { Total liabilities and stockholders' equity } & \$ 1,124
\end{array}$$
If a common-size balance sheet was prepared,what would Jennifer Company report for Cash?
A) 17.8%
B) 21.5%
C) 25.2%
D) 62.3%

Quizplus · Accepted Answer

To calculate the common-size percentage for Cash, divide the cash amount by total assets and multiply by 100: $ \frac{200}{1124} \times 100 = 17.8\%$.

The Balance Sheet for Jennifer Company Is Given Below