The Balance Sheet for James Company Is Given Below

question 45

Multiple Choice

The balance sheet for James Company is given below:
$$\begin{array} { l l } \text { Cash } & \$ 242 \\\text { Accounts Receivable } & 200 \\\text { Inventory } & 388\\\text { Prepaid Insurance } & 70 \\\text { Fixed Assets } & 452 \\\text { Accumulated Depreciation } & \text { (228) } \\\text { Total Assets } & \$ 1,124\end{array}$$
$$\begin{array} { l l } \text { Accounts payable } & \$ 152 \\\text { Wages payable } & 32 \\\text { Notes payable } & 420 \\\text { Paid-in capital } & 160 \\\text { Retained earnings } & \underline { 360 } \\\text { Total liabilities and stockholders' equity } & \$ 1,124\end{array}$$
If a common-size balance sheet was prepared,what would James Company report for accounts receivable?

• A) 13.5%
• B) 17.3%
• C) 17.8%
• D) 86.3%

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Definitions:

Underground

Operating secretly, especially as part of a resistance movement, subculture, or in illegal activities.

Camouflage

A method of disguise that allows an object or person to remain unnoticed by blending in with its surroundings.

Minimal Results

Outcomes or effects that are very small or insignificant, especially in comparison to the effort or expectations invested.

Financial Support

Assistance given in the form of money or resources to help individuals, organizations, or governments.