Given the Following Data for the King Company How Would Common Stock Appear on a Common Size Balance

question 2

Multiple Choice

Given the following data for the King Company: $$\begin{array} { l r } \text { Current liabilities } & \$ 400 \\\text { Long-term debt } & 480 \\\text { Common stock } & 700 \\\text { Retained earnings } & 520 \\\text { Total liabilities \& stockholders' equity } & \$ 2,100\end{array}$$ How would common stock appear on a common size balance sheet?

• A) 25%
• B) 58%
• C) 33%
• D) 30%

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Definitions:

Ounce

A unit of weight in the US customary and British imperial systems, equal to 1/16 of a pound or approximately 28.35 grams.

Milligram

A mass unit that is equivalent to 0.001 of a gram.

Gram

An expression of mass measuring exactly one thousandth of a kilogram.

Milligram

A unit of mass equal to one thousandth of a gram, used in the metric system.