Using the percent of sales method,projected common stock on the 2010 pro forma balance sheet is equal to (Common Stock 2009/Sales 2009)times Projected Sales 2010.

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The percent of sales method is typically used for projecting income statement accounts and variable balance sheet accounts (like accounts receivable, inventory, and accounts payable) based on a percentage of sales, not for projecting equity accounts like common stock, which do not vary directly with sales.

Using the Percent of Sales Method,projected Common Stock on the 2010