Table 4-1 Stewart Company Balance Sheet Assets: Cash and marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Fixed assets Less: accum. depr. Net fixed assets Total assets $600,000 900,000 1,500,000 75,000 $3.075,000 8,000,000 (2.075,000) $5.925,000 $9,000,000 $800,000 700,000 Liabilities: Accounts payable Notes payable Accrued taxes Total current liabilities Long-term debt Owner's equity (1 million shares of common stock outstanding) Total liabilities and owner's equity 50,000 $1,550,000 2.500.000 4,950,000 $9.000.000 Net sales (all credit) Less: Cost of goods sold Selling and administrative expense Depreciation expense Interest expense Earnings before taxes Income taxes Net income $10,000,000 (3,000,000) (2,000,000) (250,000) (200,000 4,550,000 (1.820,000) $2,730,000 Based on the information in Table 4-1, the common size net income is: 52.3% 27.3% 45.7% 37.3%