Following are balance sheets for Narragansett & Warren as of December 31, 2008 and 2009.

Required:
(a) How are common-sized financial statements used by decision makers?
(b) Prepare common-sized balance sheets for Narragansett & Warren as of December 31, 2008 and 2009.
(c) What major structural changes occurred in this business€™s balance sheet during 2009? What factors may have accounted for these changes?

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Narragansett & Warren Balance Sheets December 31,2008 and 2009 2008 2009 AsSETs Cash Accounts Receivable (net) Inventory Prepaid Expenses S 18,400 37,400 28,800 29,400 600 61,600 96,200 55,600 S124,000 $151,800 16,600 25,000 Total Current Assets Equipment (net) Total Assets 62,400 LIABILITIES Accounts Payable Accrued Liabilities S 14,200 5,400 6,600 7,200 S 20,800 S 12,600 20,000 Total Current Liabilities Long-Term Note Payable 20,000 Total Liabilities STOCKⅡOLDERS' EQUITY Common Stock Additional Paid-in Capital Retained Earnings $ 40,80032,600 24,000 24,000 48,000 47,200 Total Stockholders' Equity 83,200 119,200 $124,000 S151,800 48,000 11,200 Total Liabilities and SE