A Company Is Preparing a Common-Size Balance Sheet and Wishes

question 124

Multiple Choice

A company is preparing a common-size balance sheet and wishes the base amount to be the total amount of assets.What are the 2013 and 2014 common-size percents for cash? $$\begin{array} { | l | r | r | } \hline & \mathbf { 2 0 1 3 } & { 2014 } \\\hline \text { Cash } & \$ 21,904 & \$ 32,203 \\\hline \text { Total curtert assets } & 101,769 & 141,128 \\\hline \text { Propety and equipment } & 112,577 & 202,558 \\\hline \text { Long-tern irvestrments } & 12,700 & 4,344 \\\hline \text { Intarigible assets } & 16,621 & 48,703 \\\hline \text { Other lonp-term assets } & 11,709 & 13,754 \\\hline \text { Total assets } & \$ 255,376 & \$ 410,487 \\\hline\end{array}$$

• A)21.52% in 2013 and 22.82% in 2014.
• B)7.90% in 2013 and 7.27% in 2014.
• C)8.58% in 2013 and 7.85% in 2014.
• D)19.30% in 2013 and 20.79 in 2014.
• E)The percent cannot be computed for 2013 and it is 47.01% in 2014.

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Definitions:

Notice

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Perfect Tender Rule

A principle in commercial law that allows buyers to reject goods if they do not meet all contract specifications, regardless of how minor the defect may be.

Material Breach

A substantial breach of a significant term or terms of a contract that excuses the nonbreaching party from further performance under the contract and gives the nonbreaching party the right to recover damages.

Substantial Performance

A legal concept in contract law where a party has performed enough of their contractual obligation to warrant payment, albeit with minor deviations from the terms.