How would the company present the trade

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Nanno Trading presented the following selected from its financial statements.

Cash and cash equivalents 500,000

Trading Securities 1,000,000

Inventorty 2,500,000

Total Current assets 5,000,000

Total Assets 15,000,000

Trade and other payables 800,000

Total Liabilities 6,000,000 Net Sales 8,000,000

Operating Expenses 2,200,000

Income after tax 960,000

Question 1: On a common size statement of financial position, how would the company present the trading securities?

A. 5.05% C. 20.0% B. 6.7% D. 25.6% Solution:

Question 2: Using the same data in above, how would the company present the trade and other on a common size statement of financial position.

A. 13.3% C. 5.3% B. 10.0% D. 4.0% Solution:

Question 3: Using the same data in above, how would the company present the operating expenses on a common-size income statement?

A. 11.0% C. 25.5% B. 14.7% D. 229.0% Solution:

Reference no: EM132788285

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