Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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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
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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
Expert Solution
Check Mark
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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