Use the following Company A Balance Sheet for the next questions 8 and 9 ASSETS Cash Accounts Receivable, net Inventory Other Current Assets Property, Plant and Equipment, net Other Total Assets 1. 1. 3. The Common Size entry for Inventory for Company A is: 54% 33% 18% S 16% LIABILITIES AND EQUITY Accounts Payable Accrued Expenses Current portion of LTD Other Current Liabilities Long Term Debe Shareholder's Equity 10,000,000100 Total Liabilities and Equity 1,400,000 1,600,000 1,800,000 500,000 5,300,000 3,700,000 1,000,000 1,200,000 1,500,000 300,000 400,000 3,400,000 2,800,000 3,800,000 $ 10,000,000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Use the following Company A Balance Sheet for the next questions 8 and 9
ASSETS
Cash
Accounts Receivable, net
Inventory
Other
Current Assets
Property, Plant and Equipment, net
Other
Total Assets
1.
1.
2.
3.
The Common Size entry for Inventory for Company A is:
54%
33%
18%
S
16%
$
LIABILITIES AND EQUITY
Accounts Payable
Accrued Expenses
Current portion of LTD
Other
1,400,000
1,600,000
1,800,000
500,000
5,300,000
20%Current Liabilities
3,700,000
Long Term Debt
1,000,000
Shareholder's Equity
10,000,000 100% Total Liabilities and Equity
1,200,000
1,500,000
300,000
400,000
3,400,000
2,800,000
3,800,000
$ 10,000,000
Transcribed Image Text:Use the following Company A Balance Sheet for the next questions 8 and 9 ASSETS Cash Accounts Receivable, net Inventory Other Current Assets Property, Plant and Equipment, net Other Total Assets 1. 1. 2. 3. The Common Size entry for Inventory for Company A is: 54% 33% 18% S 16% $ LIABILITIES AND EQUITY Accounts Payable Accrued Expenses Current portion of LTD Other 1,400,000 1,600,000 1,800,000 500,000 5,300,000 20%Current Liabilities 3,700,000 Long Term Debt 1,000,000 Shareholder's Equity 10,000,000 100% Total Liabilities and Equity 1,200,000 1,500,000 300,000 400,000 3,400,000 2,800,000 3,800,000 $ 10,000,000
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Step 1

The Common size entry is determined by computing the value of the asset to the Total asset value and converting it to a percentage value. 

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