The following data are taken from the comparative balance sheet prepared for Elison Company:

Sales for 2012 were $2,000,000. Sales for 2011 were $1,800,000.
1. Prepare the asset section of a common-size balance sheet for Elison Company for 2012 and 2011.
2. Overall, Elison is less efficient at using its assets to generate sales in 2012 than in 2011. What asset or assets are responsible for this decreased efficiency?

2012 2011 S 75,000 Cash $ 68,000 Accounts receivable Inventories. Property, plant, and equipment Total assets 80,000 150,000 200,000 130,000 $353,000 $511,000