Prepare the 2015 common–base year balance sheet for Just Dew It. (Do not round i
ID: 2732140 • Letter: P
Question
Prepare the 2015 common–base year balance sheet for Just Dew It. (Do not round intermediate calculations. Round your answers to 4 decimal places, e.g., 32.1616.)
JUST DEW IT CORPORATION
2014 and 2015 Balance Sheets Assets Liabilities and Owners’ Equity 2014 2015 2014 2015 Current assets Current liabilities Cash $ 10,620 $ 13,275 Accounts payable $ 52,560 $ 60,750 Accounts receivable 21,420 29,925 Notes payable 19,260 24,075 Inventory 67,860 82,575 Total $ 99,900 $ 125,775 Total $ 71,820 $ 84,825 Long-term debt $ 36,000 $ 27,000 Owners’ equity Common stock and paid-in surplus $ 45,000 $ 45,000 Retained earnings 207,180 293,175 Net plant and equipment $ 260,100 $ 324,225 Total $ 252,180 $ 338,175 Total assets $ 360,000 $ 450,000 Total liabilities and owners’ equity $ 360,000 $ 450,000
Explanation / Answer
Common base year balance sheet is a comparative balance sheet. Here figure of a year is itemwise compared with the base year. The changes are noted in absolute as well as in percentage. Figures of 2014 can be used as base for comparison. Thus balance sheet as required is drawn below:
Common base year balance sheet for year 2015 Assets 2014 2015 Absolute Percentage Change change Current Assets: Cash 10620 13275 2655 25 Accounts receivable 21420 29925 8505 39.70588235 Inventory 67860 82575 14715 21.68435013 Total 99900 125775 25875 25.9009009 Fixed assets: New plant and equipments 260100 324225 64125 24.65397924 Total assets: 360000 450000 90000 25 Liabilities & Owners equity: Current liabilities: Accounts payable 52560 60750 8190 15.58219178 Notes payable 19260 24075 4815 25 Total 71820 84825 13005 18.10776942 Long term Debt 36000 27000 -9000 -25 Owners equity: Common stock & paid-in-surplus 45000 45000 0 0 Accumulated retained earnings 207180 293175 85995 41.50738488 TotAL 252180 338175 85995 34.1006424 Total liabilities 360000 450000 90000 25