Manchester Technology has the following data available: $\begin{array} { l l }
\text { Inventory , December 31, 2013 } & \$ 120 \
\text { Inventory , December 31, 2012 } & \$ 200 \
\text { Total Assets, December 31, 2013 } & \$ 630 \
\text { Total Assets, December 31, 2012 } & \$ 585 \
\text { Total Liabilities, December 31, 2013 } & \$ 320 \
\text { Total Liabilities, December 31, 2012 } & \$ 300
\end{array}$
If a common size balance sheet were prepared,what percentage would be attributable to the 2013 inventory of Manchester Technology?
A)19.0%
B)21.6%
C)38.7%
D)52.2%
E)60.0%

Question

Manchester Technology has the following data available: $\begin{array} { l l } 
\text { Inventory , December 31, 2013 } & \$ 120 \
\text { Inventory , December 31, 2012 } & \$ 200 \
\text { Total Assets, December 31, 2013 } & \$ 630 \
\text { Total Assets, December 31, 2012 } & \$ 585 \
\text { Total Liabilities, December 31, 2013 } & \$ 320 \
\text { Total Liabilities, December 31, 2012 } & \$ 300
\end{array}$ 
If a common size balance sheet were prepared,what percentage would be attributable to the 2013 inventory of Manchester Technology?
A)19.0%
B)21.6%
C)38.7%
D)52.2%
E)60.0%

Quizplus · Accepted Answer

To find the percentage of inventory to total assets for 2013, divide the inventory value for 2013 by the total assets for 2013: $ \frac{\$120}{\$630} = 0.1904 $ or 19.0%.

Manchester Technology Has the Following Data Available If a Common Size Balance Sheet Were Prepared,what Percentage Would