Carl Industries
Carl Industries has condensed balance sheets as shown:

Refer to the information for Carl Industries. In a common size balance sheet for 2010, plant and equipment (net) is expressed as:
A) 74.5%
B) 93.2%
C) 83.5%
D) 30.5%

Question

Carl Industries
Carl Industries has condensed balance sheets as shown:

Refer to the information for Carl Industries. In a common size balance sheet for 2010, plant and equipment (net) is expressed as:
A) 74.5% 
B) 93.2% 
C) 83.5% 
D) 30.5%

Quizplus · Accepted Answer

Common size balance sheet expresses each account as a percentage of total assets. To find the percentage of plant and equipment (net), we need to divide it by the total assets. Therefore, (600,000/718,000) x 100 = 83.5%.

Carl Industries Carl Industries Has Condensed Balance Sheets as Shown