Zabar Inc. has the following information available for 2011 and 2012:

	2011	2012
Current liabilities	$130,000	$100,000
Long-term liabilities	150,000	200,000
Total liabilities	$280,000	$300,000
Capital stock	$75,000	$75,000
Retained earnings	140,000	350,000
Total stockholders' equity	$215,000	$425,000
Total liabilities and stockholders' equity	$495,000	$725,000

Converting the 2012 column into a common-size statement would show current liabilities as being:

a. 23.53 percent of total stockholders' equity.

b. 13.79 percent of total liabilities and stockholders' equity.

c. 33.33 percent lower than 2011 current liabilities.

d. 26.26 percent of 2012 total liabilities.

Answer rating: 100% (QA)

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