Question

Problem 3-18 Common-Size and Common-Base-Year Financial Statements

In addition to common-size financial statements, common-base-year financial statements are often used. Common-base year financial statements are constructed by dividing the current-year account value by base-year account value. Thus, the result shows the growth rate in the account.
  
Prepare the common-size balance sheet and common-base-year balance sheet for the company. Use 2016 as the base-year. (Do not round intermediate calculations. Enter all common-size answers as a percent. Round your common-size answers to 2 decimal places, e.g., 32.16, and common-base-year answers to 4 decimal places, e.g., 32.1616.)
  

JARROW CORPORATION
		2016		Common-size				2017		Common-size			Common-base year
Assets
Current assets
Cash	$	8,364			%		$	10,304			%
Accounts receivable		21,153			%			23,637			%
Inventory		37,522			%			42,497			%
Total	$	67,039			%		$	76,438			%
Fixed assets
Net plant and equipment		216,070			%			244,040			%
Total assets	$	283,109			%		$	320,478			%
Liabilities and Owners’ Equity
Current liabilities
Accounts payable	$	41,598			%		$	46,584			%
Notes payable		18,164			%			17,735			%
Total	$	59,762			%		$	64,319			%
Long-term debt		24,700			%			31,700			%
Owners' equity
Common stock and paid-in surplus		38,700			%			39,900			%
Accumulated retained earnings		159,947			%			184,559			%
Total	$	198,647			%		$	224,459			%
Total liabilities and owners' equity	$	283,109			%		$	320,478			%

Answer 1

JARROW CORPORATION
	2016	Common-size	2017	Common-size	Common-base
					year
Assets
Current assets
Cash	8,364	2.95%	10,304	3.22%	1.2319
Accounts receivable	21,153	7.47%	23,637	7.38%	1.1174
Inventory	37,522	13.25%	42,497	13.26%	1.1326
Total	67,039	23.68%	76,438	23.85%	1.1402
Fixed assets
Net plant and equipment	216,070	76.32%	244,040	76.15%	1.1294
Total assets	283,109	100.00%	320,478	100.00%	1.1320
Liabilities and Owners’ Equity
Current liabilities
Accounts payable	41,598	14.69%	46,584	14.54%	1.1199
Notes payable	18,164	6.42%	17,735	5.53%	0.9764
Total	59,762	21.11%	64,319	20.07%	1.0763
Long-term debt	24,700	8.72%	31,700	9.89%	1.2834
Owners' equity
Common stock and paid-in surplus	38,700	13.67%	39,900	12.45%	1.0310
Accumulated retained earnings	159,947	56.50%	184,559	57.59%	1.1539
Total	198,647	70.17%	224,459	70.04%	1.1299
Total liabilities and owners' equity	283,109	100.00%	320,478	100.00%	1.1320