Question

Just Dew It Corporation reports the following balance sheet information for 2017 and 2018.

JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets
Assets									Liabilities and Owners’ Equity
	2017				2018					2017				2018
Current assets									Current liabilities
Cash	$	10,200			$	13,200			Accounts payable	$	46,000			$	62,160
Accounts receivable		30,200				38,640			Notes payable		27,800				33,120
Inventory		74,600				87,120
Total	$	115,000			$	138,960			Total	$	73,800			$	95,280
									Long-term debt	$	40,000			$	36,000
									Owners’ equity
									Common stock and paid-in surplus	$	60,000			$	60,000
									Retained earnings		226,200				288,720
Net plant and equipment	$	285,000			$	341,040			Total	$	286,200			$	348,720
Total assets	$	400,000			$	480,000			Total liabilities and owners’ equity	$	400,000			$	480,000

  

Prepare the 2017 and 2018 common-size balance sheets for Just Dew It. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

  

Answer 1

JUST DEW IT CORPORATION
2017 and 2018 Balance Sheets
	2017	%	2018	%		2017	%	2018	%
Current assets					Current liabilities
Cash	10,200	2.55%	13,200	2.75%	Accounts payable	46,000	11.50%	62,160	12.95%
Accounts receivable	30,200	7.55%	38,640	8.05%	Notes payable	27,800	6.95%	33,120	6.90%
Inventory	74,600	18.65%	87,120	18.15%
Total	1,15,000	28.75%	1,38,960	28.95%	Total	73,800	18.45%	95,280	19.85%
					Long-term debt	40,000	10.00%	36,000	7.50%
					Owners’ equity
					Common stock and paid-in surplus	60,000	15.00%	60,000	12.50%
					Retained earnings	2,26,200	56.55%	2,88,720	60.15%
Net plant and equipment	2,85,000	71.25%	3,41,040	71.05%	Total	2,86,200	71.55%	3,48,720	72.65%
Total assets	4,00,000	100.00%	4,80,000	100.00%	Total liabilities and owners’ equity	4,00,000	100.00%	4,80,000	100.00%

NOTE

In common-size balance sheets, each item of assets and liabilities are expressed as a percentage of the total assets.