Question

Just Dew It Corporation reports the following balance sheet information for 2017 and 2018. JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets Liabilities and Owners' Equity 2018 2017 Current liabilities 17,775 Accounts payable $ 46,875 16,425 Notes payable 19,125 56,925 Assets 2017 Current assets Cash $ 12,000 Accounts receivable 12,750 Inventory 50,250 2018 $ $ 55,575 24,750 Total $ 75,000 $ 91,125 Total $ 66,000 $ 30,000 $ 80,325 $ 27,000 Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings $ 45,000 234,000 $ 45,000 297,675 Net plant and equipment $300,000 $ 358,875 Total $279,000 $342,675 $375,000 Total assets $450,000 Total liabilities and owners' equity $375,000 $450,000 Prepare the 2018 combined common-size, common-base year balance sheet for Just Dew it. (Do not round Intermediate calculations and round your answers to 4 decimal < Prev 4 of 17 !! Next >

Answer 1

Ans.		2017	2018	Common Base
	Assets
	Current assets:
	Cash	$21,182	$24,141	1.2344
	Accounts receivables	$51,036	$59,935	1.0735
	Inventory	$120,589	$142,718	0.9440
	Total	$192,807	$226,794	1.0125
	Fixed assets:
	Net plant and equipment	$775,925	$863,726	0.9969
	Total assets	$968,732	$1,090,520	1.0000
	Liabilities and Owner's Equity
	Current liabilities:
	Accounts payable	$180,108	$190,767	0.9880
	Notes payable	$83,179	$98,175	1.0784
	Total	$263,287	$288,942	1.0142
	Long term debt	$305,000	$340,000	0.7500
	Owner's equity
	Common stock and paid in surplus	$165,000	$178,000	0.8333
	Accumulated retained earnings	$235,445	$283,578	1.0601
	Total	$400,445	$461,578	1.0235
	Total Liabilities and Owner's equity	$968,732	$1,090,520	1.0000
	*WORKING NOTES:
		2017	%	2018	%	Common Base
	Assets	Amount	(a)	Amount	(b)	(b / a)
	Current assets:
	Cash	$12,000	3.20%	$17,775	3.95%	1.2344
	Accounts receivables	$12,750	3.40%	$16,425	3.65%	1.0735
	Inventory	$50,250	13.40%	$56,925	12.65%	0.9440
	Total	$75,000	20.00%	$91,125	20.25%	1.0125
	Fixed assets:
	Net plant and equipment	$300,000	80.00%	$358,875	79.75%	0.9969
	Total assets	$375,000	100.00%	$450,000	100.00%	1.0000
	Liabilities and Owner's Equity
	Current liabilities:
	Accounts payable	$46,875	12.50%	$55,575	12.35%	0.9880
	Notes payable	$19,125	5.10%	$24,750	5.50%	1.0784
	Total	$66,000	17.60%	$80,325	17.85%	1.0142
	Long term debt	$30,000	8.00%	$27,000	6.00%	0.7500
	Owner's equity
	Common stock and paid in surplus	$45,000	12.00%	$45,000	10.00%	0.8333
	Accumulated retained earnings	$234,000	62.40%	$297,675	66.15%	1.0601
	Total	$279,000	74.40%	$342,675	76.15%	1.0235
	Total Liabilities and Owner's equity	$375,000	100.00%	$450,000	100.00%	1.0000
	*Calculations for Common Size (%) :
	Amount is percentage from assets side (2017) =   Particular amount from assets side (2017) / Total assets (2017) * 100
	Amount is percentage from liabilities side (2017) =   Particular amount from liability side (2017)/ Total liabilities and owner's equity (2017) * 100
	Amount is percentage from assets side (2018) =   Particular amount from assets side (2018) / Total assets (2018) * 100
	Amount is percentage from liabilities side (2018) =   Particular amount from liability side (2018)/ Total liabilities and owner's equity (2018) * 100