Question

Just Dew It Corporation reports the following balance sheet information for 2017 and 2018 2017 Current assets Cash Accounts receivable Inventory JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets Assets Liabilities and Owners' Equity 2018 2017 2018 Current liabilities $ 6,600 $ 12,750 Accounts payable $50,000 $ 68,750 12,200 14.250 Notes payable 19,000 35,500 78,200 95,250 $ 97,000 $ 122,250 Total $ 69,000 $104.250 Long-term debt $ 48,000 $ 45,000 Total Owners' equity Common stock and paid-in surplus Retained earnings $ 50,000 233,000 $ 50.000 300.750 Net plant and equipment $303,000 $ 377,750 Total $283,000 $350,750 Total assets $400,000 $500,000 Total liabilities and owners' equity $400,000 $500,000 Prepare the 2018 common-base year balance sheet for Just Dew It. (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.) 2017 2018 Assets Current assets Cash Accounts receivable Inventory $ 6,600 $ 12,200 78.200 97,000 $ 12.750 14.250 95.250 122.250 $ S $ 303,000 $ 400,000 $ 377.750 500.000 $ Fred assets Net plant and equipment Total assets Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debe Owners' equity Common stock and paid-in surplus Accumulated retained earnings Total Total abilities and ownersequity 68.750 35.500 50,000 $ 19,000 $ 69,000 $ $ $ 104.250 45.000 $ 48,000 $ $ 50,000 $ 233,000 283,000 $ 400,000 $ 50.000 300.750 350.750 500.000 $ $

Answer 1

Solution:

Current year common base year balance sheet = Current year balance / base year balance

Here in given question,

Current year = 2018

base year is generally previous year or the first year of operation ie.. = 2017

А B с D 1 2. 2017 2018 1.9318 1.1680 $ $ $ $ 6,600 $ 12,200 $ 78,200 $ 97,000 $ 12,750 14,250 95,250 122,250 1.2180 1.2603 1.2467 $ $ 303,000 $ 400,000 $ 377,750 500,000 1.25001 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 12 13 Liabilities and owners' Equity 14 Current Liabilities 15 Accounts Payable 16 Notes Payable 17 Total 18 Long term debt 19 Owners' Equity 20 Common Stock and paid in surplus 21 Accumulated Retained Earning 22 Total 23 Total Liabilities and Owners' Equity 1.3750 1.8684 $ $ $ $ 50,000 $ 19,000 $ 69,000 $ 48,000 $ 68,750 35,500 104,250 45,000 1.5109 0.9375 1.0000 1.2908 $ $ $ $ 50,000 $ 233,000 $ 283,000 $ 400,000 $ 50,000 300,750 350,750 500,000 1.2394 1.2500

Below is the formula used in excel to derive values:

А B с D 1 2018 Nm 12750 14250 95250 122250 =C5/B5 =C6/B6 =C7/B7 =C8/B8 377750 500000 =C10/B10 =C11/B11 2 2017 3 Assets 4 Current assets 5 Cash 6600 6 Accounts Receivable 12200 7 Inventory 78200 8 Total 97000 9 Fixed Assets 10 Net Plant and equipment 303000 11 Total assets 400000 12 13 Liabilities and owners' Equity 14 Current Liabilities 15 Accounts Payable 50000 16 Notes Payable 19000 Total 69000 18 Long term debt 48000 19 Owners' Equity 20 Common Stock and paid in surplus 50000 21 Accumulated Retained Earning 233000 22 Total 283000 23 Total Liabilities and Owners' Equity 400000 68750 =C15/B15 =C16/B16 =C17/B17 =C18/B18 35500 104250 45000 17 50000 300750 350750 =C20/B20 =C21/B21 =C22/B22 =C23/B23 500000