Discussion Forum : Analysis Of Financial Statements
Question -


Apply common size analysis to ABC Company's cash balance given the following information: cash = Rs 1,00,000; total revenues = Rs 2,50,000; total assets = Rs 4,25,000; total liabilities = Rs3,00,000.

Options:
A .   23.53%
B .   33.30%
C .   58.58%
D .   14.36%
Answer: Option A
:
A

Cash balance is  (1,00,000 / 4,25,000) * 100 = 23.53% of total assets



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