Question

JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets
Assets									Liabilities and Owners’ Equity
	2017				2018					2017				2018
Current assets									Current liabilities
Cash	$	11,250			$	19,440			Accounts payable	$	30,600			$	49,200
Accounts receivable		11,850				16,080			Notes payable		24,900				31,200
Inventory		39,150				60,240
Total	$	62,250			$	95,760			Total	$	55,500			$	80,400
									Long-term debt	$	27,000			$	24,000
									Owners’ equity
									Common stock and paid-in surplus	$	48,000			$	48,000
									Retained earnings		169,500				327,600
Net plant and equipment	$	237,750			$	384,240			Total	$	217,500			$	375,600
Total assets	$	300,000			$	480,000			Total liabilities and owners’ equity	$	300,000			$	480,000

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 places, e.g., 32.1616.)

2017 2018 Assets Current assets Cash Accounts receivable Inventory Total 11,250 $ 11,850 39,150 62,250 $ 19,440 16,080 60,240 95,760 Fixed assets $237,750$ 384,240 $300,000$ 480,000 Net plant and equipment Total assets Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total 30,600 $49,200 24,900 55,500$ 27,000$ 31,200 80,400 24,000 Long-term debt Owners' equity 48,000 327,600 $217,500 375,600 $300,000 $ 480,000 48,000 $ Common stock and paid-in surplus Accumulated retained earnings Total 169,500 Total liabilities and owners' equity

Answer 1

Prepare 2018 combined common size and common base year balance sheet Formulas used: A C D E F Common base year Balance sheet Common size 1 2017 2018 2 Assets 3 4 Current assets 11250 B5/B11 19440 =D5/D11 |-E5-C5 11850 B6/B11 16080 D6/D11 E6-C6 39150 B7/B1160240 =D7/D11 - E7-C7 62250BS/B11 95760 D8/D11 |=ES-CS -E9-C9 237750 B10/B11 384240D10/D11E10-ci0 300000 B11/B11 480000D11/D11E11-cii |=E12-C12 |-E13-C13 30600B14/B22 49200 D14/D22|- E14-C14 24900 B15/B22 31200 =D15/D22 |-E15-C15 55500 B16/B22 80400 D16/D22 = E16-C16 27000B17/B22 |24000 D17/D22 |-E17-C17 -E18- C18 Common stock and paid-in surphus 48000B19/B22 48000 D19/D22 E19-C19 169500B20/B22 327600 =D20/D22 | =E20-C20 217500 B21/B22 375600D21/D22 -E21-C21 300000B22/B22 |480000 =D22/D22 E22- C22 Cash 5 Accounts receivable 6 Inventory 7 Total 8O 9 Fixed assets Net plant and equipment 11 Total assets 10 Liabilities and Owners' Equity 13 Current liabilities Accounts payable Notes payable 12 14 15 Total 16 17 Long term debt 18 Owner's equity 19 Accumulated retained earnings 20 Total 21 22 Total liabilities and owners'equity Results obtained:

A B D E F Common base year Common size Balance sheet 1 2018 2017 2 Assets 4 Current assets 3.7500% $19,440| 3.9500% $16,080 $11,250 $11,850 4.0500% 0.3000 % 3.3500% -0.6000% S39,150 13.0500% S60,240| 12.5500 %| -0.5000% $62,250 20.7500%| $95,760| 19.9500%| -0.8000% 0.0000% $237,750 79.2500%| S384,240 80.0500 %| 0.S000 % $300,000 100.0000%| $480,000|100.0000%| 0.0000% 0.0000% Cash 5 Accounts receivable 6 Inventory Total CO 9 Fixed assets 10 Net plant and equipment 11 Total assets Liabilities and Owners' Equity 12 13 Current liabilities 0.0000% S30,600 10.2000%| S49,200| 10.2500%| 0.0500% 6.5000% -1.8000% S55,500 18.5000%| S80,40016.7500 %| - 1.7500% 5.0000%-4.0000 % 0.0000% $48,000 16.0000%| $48,000 10.0000 %|-6.0000% $169,500 56.5000% S327,600 68.2500 %| 11.7500% $217,500 72.5000%|S375,600| 78.2500%| 5.7500% $300,000 100.0000% S480,000|100.0000 %| 0.0000% Accounts payable Notes payable 14 8.3000% $31,200 S24,900 15 Total 16 17 Long term debt 18 Owner's equity Common stock and paid-in surphus Accumulated retained earnings 9.0000% $24,000| S27,000 19 20 Total 21 22 Total liabilities and owners'e