Question

The balance sheet and income statement for Carver Enterprises, Inc. are as follows:
Balance Sheet 2013
Cash and marketable securities ......... $ 500
Accounts receivable .............. 6,000
Inventories ................ 9,500
Current assets .............. $16,000
Net property, plant, and equipment ....... 17,000
Total ................... $33,000
Accounts payable ............. $ 7,200
Short-term debt ............. 6,800
Current liabilities ............. $14,000
Long-term liabilities ........... 7,000
Total liabilities ............. $21,000
Total owners’ equity ............. 12,000
Total liabilities and owners’ equity ...... $33,000
Income Statement 2013
Revenues ................ $30,000
Cost of goods sold ............. (20,000)
Gross profit ............... $10,000
Operating expenses ............ (8,000)
Net operating income ............ $ 2,000
Interest expense .............. (900)
Earnings before taxes ........... $ 1,100
Taxes .................. (400)
Net income ............... $ 700
a. Prepare a common-size balance sheet for Carver Enterprises.
b. Prepare a common-size income statement for Carver Enterprises.



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  • CreatedOctober 31, 2014
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