1. PQR is the accounting intern for, a firm that has many small clients that need monthly accounting services. Ray has been asked by the partner in charge to analyze the asset section of firm’s balance sheets which follow:

		2011	2012
Cash		$2,500	$3,900
Accounts receivable, net		35,000	40,000
Inventory		85,000	122,000
Other current assets		3,400	4,110
Total current assets		125,900	170,010
Property , plan &equipment , net		180,000	230,000
Other assets		15,000	26,000
Total assets		$320,900	$426,010

 

Required

Prepare a common-size analysis of the assets section of the firm’s balance sheet for 2011 and 2012.

Answer rating: 100% (QA)

Answer Step 1 Under a commonsize analysis the values ar... View the full answer