Question

lysis of Financial State At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash... Accounts receivable, net. Merchandise inventory...... Prepaid expenses.. Plant assets, net.... Total assets... $ 31,800 89,500 112,500 10,700 278,500 $523,000 $ 35,625 62,500 82,500 9,375 255,000 $445,000 $ 37,800 50,200 54,000 5,000 230,500 $377,500 $129,900 $ 75,250 $ 51,250 Liabilities and Equity Accounts payable ...... Long-term notes payable second mortgages on plant asset Common stock, $10 par value Retained earnings..... Total liabilities and equity..... 98,500 163,500 131,100 $523,000 101,500 163,500 104,750 $445,000 83,500 163,500 79,250 $377,500 --

Answer 1

Common Size Balance Sheet Current Year 1 Year Ago Amount Percent Amount Percent 2 Years Ago Amount Percent At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock Retained earnings Total liabilities and equity $ 31,800 $ 89,500 $ 112,500 $ 10,700 $ 278,500 $ 523,000 6.1% $ 35,625 17.1% $ 62,500 21.5% $ 82,500 2.0% $ 9,375 53.3% $ 255,000 100.0% $ 445,000 8.0% $ 37,800 14.0% $ 50,200 18.5% $ 54,000 2.1% $ 5,000 57.3% $ 230,500 100.0% $ 377,500 10.0% 13.3% 14.3% 1.3% 61.1% 100.0% $ 129,900 $ 98,500 $ 163,500 $ 131,100 $ 523,000 24.8% $ 75,250 18.8% $ 101,500 31.3% $ 163,500 25.1% $ 104,750 100.0% $ 445,000 16.9% $ 51,250 22.8% $ 83,500 36.7% $ 163,500 23.5% $ 79,250 100.0% $ 377,500 13.6% 22.1% 43.3% 21.0% 100.0% Accounts receivable as a percentage of total assets increased over the years which shows unfavorable trend. Merchandise inventory as a percentage of total assets increased over the years which shows unfavorable trend.