A Company Is Preparing a Common Size Balance Sheet and Wishes

question 30

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 2010 and 2011 common-size percents for cash?
$$\begin{array} { | l | r | r | } \hline & \mathbf { 2 0 1 0 } & { \mathbf { 2 0 1 1 } } \\\hline \text { Cash } & \mathbf { 2 1 , 9 0 4 } & \mathbf { \$ 3 2 , 2 0 3 } \\\hline \text { Total curtert assets } & 101,769 & 141,128 \\\hline \text { Propety and equipment } & 112,577 & 202,558 \\\hline \text { Long-tern irvestrments } & 12,700 & 4,344 \\\hline \text { Intarigible assets } & 16,621 & 48,703 \\\hline \text { Other lonp-term assets } & 11,709 & 13,754 \\\hline \text { Total assets } & \$ 255,376 & \$ 410,487 \\\hline\end{array}$$

• A)21.52% in 2010 and 22.82% in 2011
• B)7.90% in 2010 and 7.27% in 2011
• C)8.58% in 2010 and 7.85% in 2011
• D)19.30% in 2010 and 20.79 in 2011
• E)The percent cannot be computed for 2010 and 47.01% in 2011

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Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, subsequently eroding purchasing power.

Unemployment

The condition in which people actively seeking work are unable to find employment.

Long Run

The long run is a period in economics in which all factors of production and costs are variable, allowing for full adjustment to change.

Unemployment

Unemployment refers to the situation when individuals who are able and willing to work are not able to find employment.