Given the following data for the King Company: $\begin{array}{lr}
\text { Current liabilities } & \$ 400 \
\text { Long-term debt } & 480 \
\text { Common stock } & 700 \
\text { Retained earnings } & 920 \
\text { Total liabilities \& stockholders' equity } & \$ 2,500
\end{array}$ How would common stock appear on a common size balance sheet?

Question

Quizplus · Accepted Answer

Common stock is calculated as a percentage of total liabilities and stockholders' equity: $ \frac{700}{2500} \times 100 = 28\% $.

Given the Following Data for the King Company How Would Common Stock Appear on a Common Size Balance