Question

Question 4

1. Table 12-2
   Broadsheet Publishing Group
   Balance Sheet
   December 31, 2X10 and 2X09
   
   Current Assets: 2X10 2X09
   Cash $200 $130
   Accounts Receivable 220 100
   Inventory 120 200
   Prepaid Insurance 15 40
   Total Current Assets $555 $470
   Long-Term Assets:
   Fixed Assets $210 $230
   Less Accumulated Depreciation (135) (115)
   Total Long-Term Assets $ 75 $115
   Total Assets $630 $585
   Current Liabilities:
   Accounts Payable $ 90 $ 75
   Wages Payable 20 15
   Current Portion of Long-term Notes Payable 120 30
   Total Current Liabilities $230 $120
   Long-Term Liabilities:
   Notes Payable 90 180
   Total Liabilities $320 $300
   Stockholders' Equity:
   Common Stock $100 $ 80
   Retained Earnings 210 205
   Total Stockholders' Equity $310 $285
   Total Liabilities & Stockholders' Equity $630 $585
   
   
   Referring to Table 12-2, if a common size balance sheet were prepared, what percentage would be attributable to the 2X09 long-term note payable of Broadsheet Publishing Group?

   		100.0%
   		30.8%
   		69.2%
   		60.0%
   		63.2%

Answer 1

Percentage attributable to the 20X9 long-term note payable of Broadsheet Publishing Group = Note Payable under long-term liabilities for 20X9 / Total Assets for 20X9 = $180 / $585 = 30.8% ( rounded off to one decimal place ).