Question

Rock Construction has current assets of $45 million, total liabilities and equity of $67 million, and sales of $59 million. How would current assets be expressed on a common-size balance sheet?

Answer 1

current assets = 67%

Step-by-step explanation:

given data

current assets = $45 million

total liabilities and equity = $67 million

sales = $59 million

solution

we get here current assets that is express as

current assets =
`(current\ assets)/(liability\ and\ equity)` ......................1

put here value we get current assets that express on common size balance sheet is

current assets =
`(45)/(67)` × 100

current assets = 0.6716 × 100

current assets = 67%