Refer to the balance sheet data given in Exercise E13-3B.

a. Prepare common-size balance sheets for each year (use total assets as the base amount for computing percentages).

b. Compare the common-size balance sheets and comment briefly.

Exercise E13-3B

Comparative Balance Sheets Consider the following balance sheet data for Davis Co., Inc., an electronics and major appliance retailer, at February 26, 2019 and February 27, 2018 (amounts in thousands):

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Cash and cash equivalents. Accounts receivables..... Merchandise inventories... Other current assets... Feb. 26, 2019 Feb. 27, 2018 $ 60,872 52,944 $ 7,138 37,968 249,991 637,950 13,844 9,729 Current assets..... 765,610 304,826 Property and equipment (net). 172,724 126,442 Other assets... 15,160 7,774 Total assets $953,494 $439,042 Current liabilities.. Long-term liabilities.. Total liabilities.. Common stock... $402,028 $186,005 239,022 70,854 641,050 256,859 3,087 1,149 Additional paid-in-capital. 224,089 137,151 Retained earnings... 85,268 43,883 Total stockholders' equity. 312,444 182,183 Total liabilities and stockholders' equity $953,494 $439,042