Homework SourseCompute and find the correct commonsize percent for each acc
Compute and find the correct common-size percent for each account title.
Total Assets is $700,000; Accounts Payable is $75,000; Bonds Payable is $225,000; Common Stock is $300,000; Retained Earnings is $100,000
Solution
Each asset/ liabilities and stockholders equity is represented as a percent of total value (which in this case is $700,000).
| Total assets | $700,000 | 100% |
| Accounts payable | 75000 | (75000/700,000)=10.71%(approx) |
| Bonds payable | 225000 | (225000/700,000)=32.14%(approx) |
| Common stock | 300,000 | (300,000/700,000)=42.86%(approx) |
| Retained earnings | 100,000 | (100,000/700,000)=14.29%(approx). |
