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 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.)

Answer 1

JUST DEW IT CORPORATION
2017 and 2018 Balance Sheets
	2017	%	2018	%		2017	%	2018	%
Current assets					Current liabilities
Cash	10,200	2.5500%	13,200	2.7500%	Accounts payable	46,000	11.5000%	62,160	12.9500%
Accounts receivable	30,200	7.5500%	38,640	8.0500%	Notes payable	27,800	6.9500%	33,120	6.9000%
Inventory	74,600	18.6500%	87,120	18.1500%
Total	1,15,000	28.7500%	1,38,960	28.9500%	Total	73,800	18.4500%	95,280	19.8500%
					Long-term debt	40,000	10.0000%	36,000	7.5000%
					Owners’ equity
					Common stock and paid-in surplus	60,000	15.0000%	60,000	12.5000%
					Retained earnings	2,26,200	56.5500%	2,88,720	60.1500%
Net plant and equipment	2,85,000	71.2500%	3,41,040	71.0500%	Total	2,86,200	71.5500%	3,48,720	72.6500%
Total assets	4,00,000	100.0000%	4,80,000	100.0000%	Total liabilities and owners’ equity	4,00,000	100.0000%	4,80,000	100.0000%

In common size Balance Sheet, each assets and liabilities are expressed as a percentage of the total assets for the respective year.