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Given the following data for the Sheridan Company: Current liabilities $ 510 Long-term debt 340 Common stock 600 Retained earnings 1050 Total liabilities & stockholders’ equity $2500 How would common stock appear on a common size balance sheet?

Respuesta :

Answer:

24%

Explanation:

Given that,

Current liabilities = $ 510

Long-term debt = $340

Common stock = $600

Retained earnings = $1,050

Total liabilities & stockholders’ equity = $2,500

The common stock would appear as a percentage of the total liabilities & stockholders’ equity.

Therefore, the common stock would appear:

= Value of Common stock ÷ Total liabilities & stockholders’ equity

= $600 ÷ $2,500

= 0.24 or 24%

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