Question

How Do You Calculate Common Size Percentages?

Answer 1

Divide each dollar amount by the total assets and multiply by 100. In this case, the percentages are: Cash, 2 percent; Accounts Receivable, 1.8 percent; Supplies, 0.2 percent; Equipment, 16 percent; Land, 20 percent; Building, 60 percent. When you add the percentages--2 + 1.8 + 0.2 + 16 + 20 + 60--the total is 100.