Question

Just Dew It Corporation reports the following balance sheet information for 2014 and 2015.

JUST DEW IT CORPORATION 2014 and 2015 Balance Sheets Assets Liabilities and Owners' Equity 2014 2015 2014 2015 Current assets Current liabilities Cash Accounts receivable Inventory $ 6,560 16,160 61,280 $ 8,600 22,600 74,600 Accounts payable Notes payable $ 51,840 21,600 $ 53,000 23,600 Total $ 84,000 $105,800 Total $ 73,440 $ 32,000 40,000 $ 76,600 $ 30,000 $ 40,000 Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings 174,560 $214,560 $320,000 253,400 $293,400 $400,000 Net plant and equipment $236,000 $294,200 Total Total assets $320,000 $400,000 Total liabilities and owners' equity

Prepare the 2015 combined common-size, 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.)

Any help is appreciated :)

Answer 1

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The common-size, common-base year answers are found by dividing the common-size percentage for 2015 by the common-size percentage for 2014.

For example, the cash calculation is found by:

$8600/ $400000 = 0.0215,

$6560 / $320000 = 0.0205,

.0215/.0205 = 1.0488