Use the information and construct Common size balance sheet Balance sheet as a percentage of sales Assets

Use the information and construct 

1. Common size balance sheet
2. Balance sheet as a percentage of sales

Transcribed Image Text:

Assets Cash & securities Accounts receivable Inventories Prepaid expenses Total current assets Plant property and equipment Accumulated depreciation Net property plant and equipment Other assets Total Assets For year ending November 30 Year 1 Liabilities & Shareholders' Equity Line of credit Accounts payable Accrued compensation Accrued expenses Total current liabilities Common stock Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 3 Retention Ratio $ 4,205 $ 49,544 66,556 7,972 128,277 3,720 610 3,110 1,019 $ 132,406 $ $ 61,119 $ 7,748 4,136 14,855 87,858 16,247 28,301 44,548 $ 132,406 $ Year 2 353 100,290 139,516 17,055 257,214 9,888 1,809 8,079 1,265 266,558 S $ 37,400 $ 25,619 16,906 18,410 98,335 84,863 83,360 168,223 266,558 $ 100% Year 3 3,291 156,391 160,668 18,009 338,359 28,599 4,975 23,624 1,972 363,955 94,000 22,056 2,350 39,672 158,078 91,179 114,698 205,877 363,955 100% Assets Cash & securities Accounts receivable Inventories Prepaid expenses Total current assets Plant property and equipment Accumulated depreciation Net property plant and equipment Other assets Total Assets For year ending November 30 Year 1 Liabilities & Shareholders' Equity Line of credit Accounts payable Accrued compensation Accrued expenses Total current liabilities Common stock Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 3 Retention Ratio $ 4,205 $ 49,544 66,556 7,972 128,277 3,720 610 3,110 1,019 $ 132,406 $ $ 61,119 $ 7,748 4,136 14,855 87,858 16,247 28,301 44,548 $ 132,406 $ Year 2 353 100,290 139,516 17,055 257,214 9,888 1,809 8,079 1,265 266,558 S $ 37,400 $ 25,619 16,906 18,410 98,335 84,863 83,360 168,223 266,558 $ 100% Year 3 3,291 156,391 160,668 18,009 338,359 28,599 4,975 23,624 1,972 363,955 94,000 22,056 2,350 39,672 158,078 91,179 114,698 205,877 363,955 100%

Answer rating: 100% (QA)

Answer Lets start by constructing the common size balance sheet and the balance sheet as a percentag... View the full answer