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Rina8888 [55]
3 years ago
7

Russell's Hardware has inventory of $218,000, equity of $421,800, total assets of $647,700, and sales of $587,200. What is the c

ommon-size percentage for the inventory account?
A. 26.81 percent
B. 33.66 percent
C. 37.12 percent
D. 49.09 percent
E. 51.68 percent
Business
1 answer:
ELEN [110]3 years ago
8 0

Answer:

B. 33.66 percent

Explanation:

The common-size analysis involves comparing income statement items to revenue while balance sheet items are related to total assets, hence, the inventory account is a balance sheet item that  would need to compared to total assets.

Common-size percentage= inventory/total assets.

inventory=$218,000

total assets=$647,700

Common-size percentage=$218,000/$647,700

Common-size percentage=33.66%

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3 years ago
Read 2 more answers
Inventory records for Herb's Chemicals revealed the following:
antiseptic1488 [7]

Answer:

Inventory= $5,040

Explanation:

Giving the following information:

March 1, 2021, inventory: 1,000 gallons @ $7.20 per gallon = $7,200

Purchases:

Mar. 10 600 gals @ $ 7.25

Mar. 16 800 gals @ $ 7.30

Mar. 23 600 gals @ $ 7.35

Sales:

Mar. 5 400 gals

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Mar. 20 500 gals

Mar. 26 700 gals

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Inventory= 700*7.20= $5,040

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3 years ago
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