How to Figure the Common Size Balance-Sheet Percentages

The human body is a marvelous piece of work: it is complex, yet beautifully efficient. It constantly balances itself, taking in nutrients to grow, and expels waste to keep us alive. One of the most important processes of the body is its ability to regulate its size. When eating, it takes in energy to grow the body. When we are not eating, it takes in energy to maintain the body. Even during sleep, it will take in energy to repair the body, and to grow in the event of a growth spurt. But the body is not perfect: if it did not lose some heat when it sleeps and in times of rest, it would overheat.

With all the different sizes of paper and envelopes, the common size balance-sheet percentages are not as difficult to determine as they seem to be for some people. Starting with the balance sheet as shown below, the paper size is on the left of the balance sheet and the envelope size is on the right: In our sample balance sheet, the paper size percentage is 100. This means that the paper size is going to be used the most. The envelope size is going to be used the least. Each size is going to be used in percentages. If the paper size is used the most, the size is 1% and the envelope size is 99%. If the paper size is used the least, the size is 0% and the envelope size

Home » Bookkeeping » How to Figure the Common Size Balance-Sheet Percentages

Jun 17, 2020
Bookkeeping by Adam Hill

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Frequently Asked Questions

How do you fill out a common size balance sheet?

The balance sheet is a financial statement that summarizes the assets, liabilities, and equity of a company. The balance sheet is divided into two sections: assets and liabilities. Assets are listed on the left side of the page and liabilities are listed on the right side of the page. Equity is found in between these two sections. Assets: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Property, plant, and equipment (PP&E) Intangible assets (e.g., patents) Goodwill Liabilities: Accounts payable Accrued expenses Short-term debt Long-term debt Deferred revenue Stockholders’ equity: Common stock Additional paid-in capital Retained earnings Treasury stock Common stock: Number of shares outstanding Market value per share Book value per share

How do you analyze a common size balance sheet?

The balance sheet is a financial statement that shows the assets, liabilities, and equity of a company. The assets are listed on the left side of the balance sheet and liabilities are listed on the right side. Equity is found in between these two sections.

What is the common size percentage for the current assets?

The common size percentage for the current assets is 10%.