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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.


A

23.50%

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B

33.30%

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C

58.58%

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D

None of these

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Solution

The correct option is A

23.50%


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


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