Consolidated balance sheets for Karofsky Computer follow.

LIABILITIES AND STOCKHOLDERS€™ EQUITY

Required:
1. Prepare common size balance sheets for vertical analysis (in percentage terms, rounded to two decimal places). You do not need to include the actual dollar amounts shown above.
2. Indicate from what sources Karofsky appears to have secured the resources for its asset increase.

Transcribed Image Text:

Karofsky Computer Inc. Consolidated Balance Sheels Dollars in thousands) December 31 Current assets: Cash and cash equivalents Short-term investments Accounts receivable, net of allowance for doubtful 8 8 1 occounts of $90,992 ($83,776 in 2010) 6 Property, plant, and equipment: Land and buildings Machinery and equipment Offioe furniture and equipment 8 Accumulated depreciation and amortization Net property, plant, and equipment 2 Current liabilities S 292,200 881,717 136,895 178,294 58,238 396,961 $1,944.305 304,472 670,668 2,919 445 $ 823,182 742,622 144,779 174,547 307,932 315,023 $2,508,085 7,117 629,832 $3,145,034 Accounts payable Accrued compensation and employee benefits Accrued marketing and distribution Accrued restructuring costs Other current liabilities Total current liabilities Longterm debt Deferred tax liabilities Total liabilities Stockholders' equity: Common stock, no par value: 320,000,000 shares authorized; 119,542,527 shares issued and outstanding in 2011 (116,147,035 shares in 2010) Relained earnings Accumulated translation adjustment $ 297,929 2,096,206 10,834) $2,383,301 46 $203,613 1,842,600 (19,835) $2,026,378 $5,171,412 Total stockholders' equity Total liabilities and stockholders' equity $5,302,746 371