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Z Co. has total assets of $150,000, total stockholders' equity of $80,000, total annual revenues of $460,000, cost of goods sold of $290,000, and inventory of $30,000.
-In preparing common-sized statements for the year, which of the following percentages would represent cost of goods sold?

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Use the following information to answer questions 
Z Co. has total assets of $150,000, total stockholders' equity of $80,000, total annual revenues of $460,000, cost of goods sold of $290,000, and inventory of $30,000.
-In preparing common-sized statements for the year, which of the following percentages would represent cost of goods sold?

Quizplus · Accepted Answer

The common-sized percentage for cost of goods sold is calculated by dividing the cost of goods sold by total revenues. So, $290,000 / $460,000 = 0.6304 or 63%.

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