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 total liabilities?

Question

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 total liabilities?

Quizplus · Accepted Answer

47%Total liabilities can be calculated by subtracting total stockholders' equity from total assets. Thus, total liabilities = $150,000 - $80,000 = $70,000. The percentage for total liabilities is then ($70,000 / $150,000) * 100 = 46.67%, which rounds to 47%.

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