Question

# A firm has sales of $1,420, net income of $236, net fixed assets of $544, and current assets of $500. the firm has $96 in inventory. what is the common-size statement value of inventory?

Answer

7.63%

- Identify the formula to calculate common-size statement value of inventory.
- Write down the formula: Common-size statement value of inventory = (Inventory / Total Assets) * 100
- Calculate the total assets.
- Total assets = Net Fixed Assets + Current Assets
- Calculate the common-size statement value of inventory
- Common-size statement value of inventory = (96 / (544 + 500)) * 100 = 7.63%