Question

Prepare a common-size balance sheet from the following information for Carla Vista Supply Company. (Round answers to 1 decimal place, e.g. 52.7%.)

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Carla Vista Supply Company Balance Sheet as of June 30, 2017($ thousands) % of Assets Liabilities and Equity: Accounts payable Notes payable Assets: % of Assets Cash and marketable securities $395,000 706,000 1,162,000 42,600 $2,305,600 1,982,000 $817,000 112,000 43,100 $972,100 1,154,000 $2,126,100 1,312,000 849,500 $2,161,500 $4,287,600 Accounts receivable Inventory Accrued income taxes Other current assets Total current liabilities Total current assets Long-term debt Net plant and equipment Total liabilities Common stock Retained earnings Total common equity Total assets $4,287,600 Total liabilities and equity

Answer 1

All percentages are to be calculated taking total assets as base.

Balance Sheet will be as follows:

Assets		% of Assets	Liabilities and Equity
Cash and Marketable Securities	395,000	9.2%	Accounts Payables	817,000	19.1%
Accounts Receivables	706,000	16.5%	Notes Payable	112,000	2.6%
Inventory	1,162,000	27.1%	Accrued Income Taxes	43,100	1.0%
Other Current Assets	42,600	1.0%	Total Current Liabilities	972,100	22.7%
Total Current Assets	2,305,600	53.8%	Long Term Debt	1,154,000	26.9%
Net Plant and Equipment	1,982,000	46.2%	Total Liabilities	2,126,100	49.6%
Total Assets	4,287,600	100%	Common Stock	1,312,000	30.6%
			Retained Earnings	849,500	19.8%
			Total Common Equity	2,161,500	50.4%
			Total Liabilities and Equity	4,287,600	100%