Question

Just Dew It Corporation reports the following balance sheet information for 2017 and 2018.

JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets
Assets									Liabilities and Owners’ Equity
	2017				2018					2017				2018
Current assets									Current liabilities
Cash	$	12,157			$	14,105			Accounts payable	$	46,382			$	49,276
Accounts receivable		29,382				32,815			Notes payable		18,246				19,784
Inventory		54,632				57,204
Total	$	96,171			$	104,124			Total	$	64,628			$	69,060
									Long-term debt	$	49,000			$	45,000
									Owners’ equity
									Common stock and paid-in surplus	$	50,000			$	50,000
									Retained earnings		299,784				315,894
Net plant and equipment	$	367,241			$	375,830			Total	$	349,784			$	365,894
Total assets	$	463,412			$	479,954			Total liabilities and owners’ equity	$	463,412			$	479,954

Prepare the 2018 common-base year balance sheet for Just Dew It. (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.)

Answer 1

Prepare a common-base year balance sheet for the year 2018 as shown below: B C Common-base year Balance Sheet 2018 Amount Assets 5 Current assets 6 Cash $14,105 2.9388% 7 Accounts receivable $32,815 6.8371% 8 Inventory $57,204 11.9186% 9 Total $104,124 21.6946% Fixed assets 11 Net plant and equipment $375,830 78.3054% 12 Total assets $479,954 100.0000% Liabilities and Owners' Equity 14 Current liabilities 15 Accounts payable $49,276 10.2668% 16 Notes payable $19,784 4.1221% 17 Total $69,060 14.3889% 18 Long-term debt $45.000 9.3759% 19 Owners' equity Common stock and paid-in surplus $50,000 10.4177% 21 Accumulated retained earnings $315,894 65.8176% 22 Total $365.894 76.2352% 23 Total liabilities and owners' equity $479,954 100.0000% 13 20

In the common-base year balance sheet, % of respective asset is determined by dividing the amount of the respective asset with the total assets. % of respective liability and % respective owners' equity is determined by dividing the amount of the respective liability and respective owners' equity with the total liabilities and owners' equity.

Workings: Common-base year Balance Sheet 2 2018 Amount % 14105 32815 57204 =SUM(B6:B8) =B6/$B$12 =B7/$B$12 =B8/$B$12 =B9/$B$12 375830 =B9+B11 =B11/$B$12 =B12/$B$12 13 Assets Current assets Cash Accounts receivable 8 Inventory 9 Total 10 Fixed assets 11 Net plant and equipment 12 Total assets Liabilities and Owners' Equity 14 Current liabilities 15 Accounts payable 16 Notes payable 17 Total 18 Long-term debt 19 Owners' equity 20 Common stock and paid-in surplus 21 Accumulated retained earnings 22 Total 23 Total liabilities and owners' equity 149276 19784 =SUM(B15:B16) 45000 =B15/$B$23 =B16/$B$23 =B17/$B$23 =B18/$B$23 50000 =B20/$B$23 315894 =B21/$B$23 ==+B20+B21 =B22/$B$23 =+B17+B18+B22 =B23/$B$23