Problem 3-18 Common-Size and Common-Base-Year Financial Statements

In addition to common-size financial statements, common-base-year financial statements are often used. Common-base year financial statements are constructed by dividing the current-year account value by base-year account value. Thus, the result shows the growth rate in the account. Prepare the common-size balance sheet and common-base-year balance sheet for the company. Use 2016 as the base-year. (Do not round intermediate calculations. Enter all common-size answers as a percent. Round your common-size answers to 2 decimal places, e.g., 32.16, and common-base-year answers to 4 decimal places, e.g., 32.1616.)

JARROW CORPORATION
		2016		Common-size				2017		Common-size			Common-base year
Assets
Current assets
Cash	$	8,364			%		$	10,304			%
Accounts receivable		21,153			%			23,637			%
Inventory		37,522			%			42,497			%
Total	$	67,039			%		$	76,438			%
Fixed assets
Net plant and equipment		216,070			%			244,040			%
Total assets	$	283,109			%		$	320,478			%
Liabilities and Owners Equity
Current liabilities
Accounts payable	$	41,598			%		$	46,584			%
Notes payable		18,164			%			17,735			%
Total	$	59,762			%		$	64,319			%
Long-term debt		24,700			%			31,700			%
Owners' equity
Common stock and paid-in surplus		38,700			%			39,900			%
Accumulated retained earnings		159,947			%			184,559			%
Total	$	198,647			%		$	224,459			%
Total liabilities and owners' equity	$	283,109			%		$	320,478			%