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%
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% 
D) 30.5%

Quizplus · Accepted Answer

To create a common size balance sheet, we express each item as a percentage of total assets. 
For plant and equipment (net), we divide $61,000 by total assets of $73,500 to get 0.83, or 83%. Therefore, the correct answer is C) 83%.

Carl Industries Carl Industries Has Condensed Balance Sheets as Shown