Prepare a common size balance sheet for the following: BALANCE SHEET 2010 Cash &

Question

Prepare a common size balance sheet for the following:

BALANCE SHEET 2010 Cash & marketable securities $ 500 Accounts receivable 6,000 Inventories 9,500           Current assets $ 16,000 Net property plant & equipment 17,000           Total $ 33,000 Accounts payale $ 7,200 Short-term debt 6,800           Current liabilities $ 14,000 Long-term liabilities 7,000           Total liabilities $ 21,000           Total owners' equity 12,000           Total liabilities and owners' equity $ 33,000 INCOME STATEMENT 2010 Revenues $ 30,000 Cost of goods sold (20,000) Gross profit $ 10,000 Operating expenses (8,000) Net operating income $ 2,000 Interest expense (900) Earnings before taxes $ 1,100 Taxes (400) Net income $ 700

Explanation / Answer

A common-size balance sheet shows each item as a percentage of total assets, and income statement is not required to prepare the common-size balance sheet.

COMMON-SIZE BALANCE SHEET $ % OF ASSETS Cash & Marketable Securities 500 1.52 Accounts Receivable 6,000 18.18 Inventories 9,500 28.79 Current Assets 16,000 48.48 Net Property, Plant & Equipment 17,000 51.52 TOTAL ASSETS 33,000 100.00 Accounts payable 7,200 21.82 Short-term debt 6,800 20.61 Current liabilities 14,000 42.42 Long term liabilities 7,000 21.21 Total liabilities 21,000 63.64 Total owners' equity 12,000 36.36 Total liabilities + Owners' Equity 33,000 100.00

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---