Question

Saved ment Assets 2017 2018 Current assets Cash Accounts receivable Inventory JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets Liabilities and Owners' Equity 2018 2017 Current liabilities $ 18,260 Accounts payable $ 58,400 23,100 Notes payable 23.400 54,780 $ 96,140 Total $ 81,800 $ 14,200 19,000 51,800 $ 61,820 25,080 $ 86,900 Total $ 85,000 $ 22,000 Long-term debt $ 32,000 Owners' equity Common stock and paid-in $ 44,000 surplus Retained earnings 242,200 $ 44,000 287,100 Total $286,200 $ 331,100 Net plant and equipment $343,860 $ 315,000 $400,000 $440,000 Total assets Total liabilities and owners' equity $400,000 $440,000 Dronth 1010 Pembinar ammonitorAmmanhaer hannra ebant far het

Answer 1

Solution:

In order to create combined common sized, common base year balance sheet we 1st need to calculate common size balance sheet for both the years 2017 and 2018 (It is shown in working columns of below image).

After calculating common size balance sheet, now to prepare 2018 combined common sized common base year balance sheet, we need to divide 2018 common size amount by 2017 common size amount.

2018 combined common size amount = 2018 Common size amount / 2017 common size amount

А B с D 1 E F Working (Common Size Statement) 2017 2018 w N 1.1690 1.1053 0.9614 1.0282 3.55% 4.75% 12.95% 21.25% 4.15% 5.25% 12.45% 21.85% 0.9924 78.75% 100.00% 78.15% 100.00% 1.0000 2017 2018 3 Assets 4 Current assets 5 Cash $14,200 $18,260 6 Accounts Receivable $19,000 $23,100 7 Inventory $51,800 $54,780 8 Total $85,000 $96,140 9 Fixed Assets 10 Net Plant and equipment $315,000 $343,860 11 Total assets $400,000 $440,000 12 13 Liabilities and owners' Equity 14 Current Liabilities 15 Accounts Payable $58,400 $61,820 16 Notes Payable $23,400 $25,080 17 Total $81,800 $86,900 18 Long term debt $32,000 $22,000 19 Owners' Equity 20 Common Stock and paid in surplu $44,000 $44,000 21 Accumulated Retained Earning $242,200 $287,100 22 Total $286,200 $331,100 23 Total Liabilities and Owners' Equity $400,000 $440,000 0.9623 0.9744 0.9658 14.60% 5.85% 20.45% 8.00% 14.05% 5.70% 19.75% 5.00% 0.6250 0.9091 1.0776 11.00% 60.55% 71.55% 100.00% 10.00% 65.25% 75.25% 100.00% 1.0517 1.0000

Below are the formula used to calculate above figures:

А B с D 1 E F Working (Common Size Statement 2017 2018 2. 2017 2018 3 Assets 4 Current assets 5 Cash 6 Accounts Receivable 7 Inventory 8 Total 9 Fixed Assets 10 Net Plant and equipment 11 Total assets 14200 19000 51800 18260 23100 54780 =F5/E5 =F6/E6 =F7/E7 =F8/E8 =B5/$B$11 =B6/$B$11 =B7/$B$11 =B8/$B$11 =C5/$C$11 =C6/$C$11 =c7/$C$11 =C8/$C$11 85000 96140 343860 315000 400000 |=F10/E10 =F11/E11 =B10/$B$11 =B11/$B$11 =C10/$C$11 |=C11/$C$11 440000 12 61820 25080 86900 13 Liabilities and owners' Equity 14 Current Liabilities 15 Accounts Payable 58400 16 Notes Payable 23400 17 Total 81800 18 Long term debt 32000 19 Owners' Equity 20 Common Stock and paid in surplus 44000 21 Accumulated Retained Earning 242200 22 Total 286200 23 Total Liabilities and Owners' Equity |400000 =F15/E15 =F16/E16 =F17/E17 |=F18/E18 =B15/$B$23 =B16/$B$23 =B17/$B$23 | =B18/$B$23 =C15/$C$23 =C16/$C$23 =C17/$C$23 =C18/$C$23 22000 44000 287100 =F20/E20 =F21/E21 =F22/E22 =F23/E23 =B20/$B$23 =B21/$B$23 =B22/$B$23 =B23/$B$23 =C20/$C$23 =C21/$C$23 =C22/$C$23 =C23/$C$23 331100 |440000