Question

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 $ 64,628 $ 69,060 Total $ 96,171 $ 104.124 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

Preparing Standardized Financial Statements [LO1] Prepare the 2018 combined common-size, common-base year balance sheet for Just Dew It.

Sources and Uses of Cash [LO1] For each account on this company’s balance sheet, show the change in the account during 2018 and note whether this change was a source or use of cash. Do your numbers add up and make sense? Explain your answer for total assets as compared to your answer for total liabilities and owners’ equity.

Answer 1

Solution for LO1

JUST DEW IT CORPORATION
SUMMARY OF STANDARDISED BALANCE SHEET
Assets			Common Size		CBY	Combined
	2017	2018	2017	2018	2017	2018
Cash	12157	14104	2.62	2.94	1.16	1.12
Accounts Receivable	29382	32815	6.34	6.84	1.12	1.08
Inventory	54632	57204	11.79	11.92	1.05	1.01
Total(Current Assets)	96171	104124	20.75	21.69	1.08	1.05
Net Plant & Equipment	367241	375830	79.25	78.31	1.02	0.99
Total Assets	463412	479954	100	100	1.04	1.00
Liabilities & Owners Equity			Common Size		CBY	Combined
	2017	2018	2017	2018	2017	2018
Accounts Payable	46382	49276	10.01	10.27	1.06	1.03
Notes Payable	18246	19784	3.94	4.12	1.08	1.05
Total Current Liabilities	64628	69060	13.95	14.39	1.07	1.03
Long Term debt	49000	45000	10.57	9.38	0.92	0.89
Common Stock	50000	50000	10.79	10.42	1.00	0.97
Retained Earnings	299784	315894	64.69	65.82	1.05	1.02
Total Equity	349784	365894	75.48	76.24	1.05	1.01
Total Liabilities & Owners Equity	463412	479954	100	100	1.04	1.00